Discipline, not relief will define the next era of VCTs

'Periods of recalibration are not inherently negative'

clock • 4 min read

Nick Morgan looks at the next chapter for VCTs and says for advisers, this is not simply about fundraising, it is a suitability and portfolio construction story

The Autumn Budget decision to reduce Venture Capital Trust (VCT) income tax relief from 30% to 20% from April 2026 has prompted an immediate and understandable reaction across the adviser community.  For many firms, the short-term focus is clear: what does this mean for clients ahead of the next tax year-end?  With relief remaining at 30% until April 2026, we are already seeing increased engagement as advisers assess whether clients should use allowances sooner rather than later, in a last chance to benefit from that extra 10%. But beyond the inevitable year-end surge, exacerbated by ...

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