Chris examines the evolving perception of VCTs in light of recent budget changes, the impact of VCTA-led reforms on age limits and funding, the resilience of VCTs amid economic challenges, and their role in driving technological innovation.
The VCTA serves as the industry body representing 12 of the UK’s largest venture capital trust managers. Collectively, its members manage over 90% of the VCT industry, overseeing £6.5 billion in funds invested in high-growth businesses.
GBI: How have the post-budget adjustments to CGT and pensions affected investor sentiment towards VCTs?
CL: “The Chancellor’s Budget has once again reinforced Venture Capital Trusts (VCTs) as a key pillar of tax-efficient investing in the UK. With changes to Capital Gains Tax and pension thresholds shifting investor priorities, VCTs have become an increasingly attractive and mainstream option—providing access to the UK’s most innovative, high-growth businesses while offering significant tax benefits.
For more than 30 years, VCTs have been instrumental in driving innovation, supporting job creation, and stimulating economic growth. This combination of personal financial advantages and broader economic contribution continues to appeal to investors seeking both stability and purpose in an evolving financial landscape.”
