VCT fundraising after the tax relief cut: How has the 2026/27 season started?

Three months into the 2026/27 tax year, Daniela Sesztak, Investment Analyst at MICAP, part of Defaqto, reviews the latest trends in VCT fundraising and what they reveal so far. (Source: IFA Magazine)

The start of each tax year offers an opportunity to gauge the health of the Venture Capital Trust (VCT) market, providing an early view of investor demand and fundraising trends.

This year’s figures come against the backdrop of the Autumn 2025 Budget, which reduced VCT income tax relief from 30% to 20% from 6 April 2026. The key question is how this lower incentive will affect investor appetite.

Data provided to MICAP by VCT managers shows that offers remaining open after the tax year-end raised £51.1 million between 6 April and 29 June 2026, up from £42.9 million during the same period in 2025. However, much of this fundraising was driven by a handful of offers, with Gresham House Income & Growth VCTs and Octopus Apollo VCT accounting for almost three-quarters of the total.

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