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Explainer videos
August 2024
What are Venture Capital Trusts (VCTs)?
A Venture Capital Trust (“VCT”) is a tax-efficient investment company listed on the London Stock Exchange.
VCTs were introduced by the Government in 1995 to stimulate investment in smaller UK companies and now have assets of over £6 billion invested. Investors are rewarded with income tax relief and tax-free dividends.
VCTs offer a range of tax advantages that can help your clients maximise their returns while supporting the growth of small UK companies.
Watch the video below to find out more about the benefits of VCTs.
Please note that this video references a 30% VCT income tax relief rate. Following changes announced in the 2025 Autumn Budget, the rate of upfront income tax relief for qualifying VCT investments was reduced to 20% for shares issued on or after 6 April 2026. Tax benefits depend on individual circumstances and may change in the future.
