VCTs raise over £300 million

Fundraising for venture capital trusts (VCTs) totalled £311 million for the last tax year, more than double the amount raised in 2008/9.


Fundraising for venture capital trusts (VCTs) totalled £311 million for the last tax year, more than double the amount raised in 2008/9.

Fundraising for venture capital trusts (VCTs) totalled £311 million for the last tax year, more than double the amount raised in 2008/9.

Limited life VCTs secured the bulk of the funding, some £186 million, while generalist VCTs brought in £86 million, according to Tax Efficient Review.

The firm to raise the most funds was Octopus Investments, which attracted £50 million for its limited life VCT.

Chris Hulatt, a director at Octopus, says, ‘As tax benefits on pensions are reduced this year and high earners face rising tax burdens, VCT investments are an increasingly attractive solution for tax-efficient saving.’

The government offers investors in VCTs income tax relief of 30 per cent on their money, while any dividends paid are also tax-free.

Nick Britton

Lexus Ernser

Nick was the Managing Editor for growthbusiness.co.uk when it was owned by Vitesse Media, before moving on to become Head of Investment Group and Editor at What Investment and thence to Head of Intermediary...

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Venture capital funding