Simon Moon, from Unicorn Asset Management argues that venture capital trusts (VCTs) are becoming a core part of financial planning as tax pressures on investors grow.
VCT inflows have been rising, with £895m invested in 2024/25—one of the strongest years on record. These trusts back high-growth UK companies while offering 30% upfront tax relief and tax-free dividends, often targeting annual yields of 5–7%.
With frozen tax thresholds pushing more investors into higher bands, tax-free VCT income is increasingly attractive. Although the latest Budget proposes cutting upfront relief to 20% from April, VCTs remain a valuable option—particularly for those who have already maxed out ISAs and pensions.