AlbionVC has opened a £40m top-up across its three VCTs, with the potential to raise a further £20m through over-allotment.
The offer has launched earlier than usual this year, following changes to the VCT regime introduced in April. These included an increase in the annual investment limit from £5m to £10m for standard companies and from £10m to £20m for knowledge-intensive businesses, alongside a reduction in upfront VCT tax relief from 30% to 20%.
AlbionVC currently manages more than £780m across its VCTs.
Albion managing partner Will Fraser-Allen described the reduction in VCT tax relief as disappointing, adding that he would like to see the change reconsidered in the future.
Fraser-Allen explained that Albion has typically carried out a top-up fundraising each year for more than a decade, making it a familiar part of the firm’s fundraising cycle.
However, this year’s offer has been brought forward in response to the changes to the tax relief rules. The earlier launch is intended to give advisers more time to assess the opportunity and consider how the proposition fits within the context of the reduced rate of tax relief.