Andy Bloxam explores the landscape of venture capital trusts (VCTs) as the tax year-end approaches…
With the 5 April 2025 deadline nearing, investors have a valuable opportunity to contribute to the UK economy by investing in VCTs.
These investment vehicles not only offer compelling tax advantages but also provide vital support to small, innovative businesses that fuel economic growth, generate employment, and drive regional development.
At a time when the UK urgently needs growth, VCTs present a meaningful way to back the real economy while fostering innovation and entrepreneurship for a prosperous future.
The Vital Role of VCTs in the UK Economy
Since their introduction 30 years ago to stimulate investment in smaller UK businesses, venture capital trusts (VCTs) have helped over 1,000 companies scale and innovate. Today, businesses backed by VCTs collectively employ more than 106,000 people across the country.
VCTs have had a profound impact on the UK economy by addressing the “growth funding gap” that many high-potential companies face during their scale-up phase. By providing long-term financial support—often referred to as ‘patient capital’—VCTs help ensure that the UK remains a competitive hub for entrepreneurship and innovation, even in the face of economic challenges.
Investor confidence in VCTs remains strong, as evidenced by the £882 million raised during the 2023/24 tax year to support high-growth businesses.
