VCTs bring green shoots as tax burdens bite

The VCT fundraising season is in full swing

clock • 4 min read

Simon Moon explains why he believes VCTs are becoming an evergreen mainstay of financial planning as tax burden weight on investors…

With tax burdens weighing heavily on the minds, and pockets, of investors, venture capital trusts (VCT) are becoming an evergreen mainstay of financial planning. Indeed, inflows have been steadily on the rise. In the 2024/25 tax year £895m was invested in VCTs, the third largest annual raise. It's down from a peak of £1.1bn in 2021/22 but north of the £882m raised in 2023/24. These trusts provide essential capital and support to help some of the UK's most exciting companies to grow, with the additional advantage of the 30% tax relief they currently offer plus tax-free dividends. So...

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