This figure is 37% above the five-year average for the same period, as investors rushed into VCTs ahead of the planned cut to upfront income tax relief from 30% to 20%, set to take effect in April 2026.
A total of £568m has been invested in VCTs so far this tax year, up 4.3% year-on-year and 16% higher than in 2023/24.
Wealth Club chief investment strategist Susannah Streeter said that with taxes at a 70-year high, it is no surprise VCTs are proving attractive.
“Recent cuts to capital gains and dividend tax-free allowances have eroded returns elsewhere. For those who have already maxed out their pension and ISA allowances, VCTs are the natural next step,” she said.
Streeter added that VCTs offer a compelling, tax-efficient way to back growth companies, allowing investments of up to £200,000 per tax year for as much as £60,000 in tax relief, provided they are held for at least five years.