The Association of Investment Companies (AIC) has published the fundraising figure for the Venture Capital Trusts (VCTs) sector, which raised GBP728 million for the 2017/18 tax year, the second highest amount since the inception of VCTs and an increase of 34 per cent on last year’s figure (GBP542 million).
It is also the highest amount ever raised at the current level of 30 per cent upfront tax relief.
The highest VCT fundraising figure was in the 2005/6 tax year when the sector raised GBP779 million, when the initial tax relief on investments was 40 per cent.
VCT assets under management at 5 April 2018 were GBP4.3 billion, up from GBP3.9 billion at 5 April 2017.
Ian Sayers (pictured), Chief Executive of the Association of Investment Companies (AIC), says: “The 2017/18 fundraising figure is testament to the demand for VCTs from investors. It is the second highest fundraising amount since VCTs were introduced in 1995 and significantly more than in 2016/17, which was the previous second-highest total of GBP542 million. This year’s bumper fundraising has been boosted by the Government’s recognition of VCTs as effective providers of patient capital in the November 2017 Budget, as well as the pension rule changes and VCTs’ strong long-term growth and income record.
“VCT fundraising is vital to UK smaller companies, as they will benefit from the VCT investment and expertise they need to grow. VCT-backed businesses deliver vital economic benefits, with jobs more than doubling after VCT investment. I am confident that VCTs will continue to be a vehicle delivering transformational change for some of the UK’s fastest growing businesses.”
