"There's been a surge in investment in Venture Capital Trusts as the end of the tax year looms and investors make the most of the incentives currently on offer. VCTs are stock market listed funds which invest specifically in young, usually private, businesses looking to fund growth. It's an exciting opportunity to provide the financial fuel for promising firms while saving tax at the same time."
"These government schemes are aimed at supporting growth across the UK economy and investors are ploughing over 4% more money in compared to last year, and 16% more than in 2023/24. The upswing may be partly due to the changes to tax incentives coming down the line. In the new tax year, relief is reducing from 30% to 20%, so investors have been piling into the offers before the deadline."
£568 million has been invested into Venture Capital Trusts so far this tax year, representing a 4.3% rise year‑on‑year and 16% more than 2023/24. VCT tax relief will reduce from 30% to 20% in the next tax year, prompting investors to subscribe before the deadline. Since the Budget, VCT subscriptions total £310m, 37% higher than the average for the same period over the last five tax years. Companies that received VCT funding include Veremark, Lucky Saint, Farmer J and NuQuantum. VCTs are listed funds that invest primarily in young, growth‑focused private businesses.
Read at London Business News | Londonlovesbusiness.com
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