Can Labour’s growth plans revive VCT funding?

Economic upheaval has tested VCTs’ resilience, but the Chancellor’s growth plans could make them central to revitalising the UK economy (Source Portfolio Adviser)

Venture Capital Trusts (VCTs) and Their Role in UK Entrepreneurship

Since their introduction in 1995, Venture Capital Trusts (VCTs) have played a crucial role in supporting entrepreneurship across the UK. These investment vehicles not only offer tax-efficient opportunities for individuals but also provide vital funding to early-stage, innovative businesses.

However, in recent years, VCTs and their portfolios have faced significant challenges. Rising inflation, interest rate increases, and political uncertainty have created a difficult environment for the high-growth companies that rely on VCT backing.

Despite these obstacles, the latest Budget reaffirmed the importance of VCTs in driving economic recovery. The Labour government’s endorsement could mark a turning point for the sector, reinforcing its role in stimulating business growth.

Revitalising VCT Fundraising

The landscape of VCT fundraising has been shaped by shifting macroeconomic conditions and evolving investor priorities.

Investors continue to be attracted to VCTs for their tax advantages, which include up to 30% income tax relief on investments of up to £200,000 per tax year, provided shares are held for at least five years. Additionally, dividends are tax-free, and any capital gains from selling VCT shares are exempt from capital gains tax, making them an appealing option for long-term investment.

Click here to read the full article 

Scroll to Top

Market Download Subscribe

The market download is a regular weekly newsletter for financial advisers, wealth managers and industry contacts. If you would like to receive it, please submit a subscription request below, and our team will review and come back to you with any questions. Please note this newsletter is only intended for industry professionals and connected parties.

Global Returns Project: Find Out More or Make A Donation

Please fill in the details below to find out more or to enquire about making a donation to the Global Returns Project.

Download Request​

Please provide your details in order to download this document.

Download Request

Please provide your details in order to download this document.

Download Request

Please provide your details in order to download this document.

Download Requests

Please provide your details in order to download this document.

Arrange a Demonstration

Please provide as many details as you can and we will get back to you very soon to arrange the demonstration with you.

Sign Up to GrowthInvest

Thank you for your interest in GrowthInvest. We offer GrowthInvest platform accounts to certain private investors as well as to their financial advisers and wealth managers. Because different regulations apply, please choose the correct sign up option below.

If you are a private investor

Please visit the GrowthInvest Platform login page and click on the Register link.

If you are an industry professional

Please provide the following details to help us review your request and configure your account appropriately.

Message Us or Register Interest

If you would like to leave us a message or register your interest in the GrowthInvest platform, please leave a few details outlining how we can help and we will get back to you very soon.

Message Sent

Thanks for your message. We will be in touch soon.