Five reasons VCTs could make sense for your clients and your business

'VCTs are now emerging as a tax-efficient option for a potentially wider audience'

clock • 5 min read

Kirsty Barr explains why there's never been a better time for advisers to harness the potential of considering VCTs for clients...

Venture capital trusts (VCTs) might not be something you recommend every day, but they warrant attention. As the scheme turns 30, VCTs are gaining renewed interest – both from advisers and clients seeking strong post-tax outcomes and diversification. Long viewed as a niche, end-of-year tax planning tool for high net worth clients, VCTs are now emerging as a tax-efficient option for a potentially wider audience - particularly as limits on pensions and ISAs continue to tighten. They're so in demand in fact, that almost £900m was invested into VCTs in the 2024/25 tax year, the third highest...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on VCTs / EIS

Budget winners: Why EIS expansion matters for advisers

Budget winners: Why EIS expansion matters for advisers

Five generous tax reliefs

Moray Wright
clock 19 December 2025 • 4 min read
FCA vows to reform rules for VCT and alternative investment managers in 2026

FCA vows to reform rules for VCT and alternative investment managers in 2026

Letter from FCA CEO Nikhil Rathi to prime minister Keir Starmer

Linus Uhlig
clock 10 December 2025 • 1 min read
Why EIS and BR are powerful tools in the advice consolidation equation

Why EIS and BR are powerful tools in the advice consolidation equation

'The strategic use of tax planning products is emerging as a key differentiator'

Andrew Aldridge
clock 05 December 2025 • 7 min read