Luke Barnett, head of tax advantaged investments at St James’s Place, said: “Fundraising raised through the Enterprise Investment Scheme are back to levels seen prior to the Covid pandemic.
“The year prior (2021-22) was a record as the economy rebounded after various lockdowns, and so the decline should be taken in context.
“That being said, looking at recent VCT fundraising data from the AIC, fundraising levels have not recovered to the post-pandemic highs.
“On one hand this reflects a more challenging environment for fundraising in the early stage venture space, but levels remain elevated and the scheme continues to provide support to some of the UK’s fastest growing businesses.”
HMRC said in the year the number of VCTs managing funds had also decreased compared with the previous tax year.
The amount of income tax relief claimed reflected the decrease in funds raised by VCTs which fell by 6 per cent.
The amount of investment income tax relief is claimed on fell in 2022 to 2023, reflecting the decrease in funds raised by VCTs in that tax year.