The amount of money raised by Venture Capital Trusts (VCTs) in the 2018/19 tax year for investment in small businesses reached GBP731 million, the highest amount ever raised at the current level of 30 per cent up-front tax relief and the second highest amount since VCTs’ inception.
Last year the VCT sector raised GBP728 million.
That’s according to the latest figures released by The Association of Investment Companies (AIC).
Ian Sayers, Chief Executive of the Association of Investment Companies (AIC), says: “The 2018/19 fundraising figure reflects consistent high demand for the VCT sector and the growing recognition of the benefits VCTs provide to investors. It is the second highest fundraising figure since VCTs were introduced, boosted by the pension changes and VCTs’ strong long-term record of delivering growth and income returns.
“VCT fundraising is crucial to the UK’s younger companies, as they will benefit from the VCT investment and expertise they need to grow. VCT-backed businesses deliver vital economic, social and environmental benefits, with jobs more than doubling after VCT investment. VCTs invest in important areas like healthcare, technology, education and the environment. VCT investment continues to be a catalyst for change at some of the UK’s fastest growing businesses.”
