Latest figures published today by the Association of Investment Companies (AIC) report that the Venture Capital Trust (VCT) sector raised GBP457.5m in the 2015/2016 tax year – the third highest on record.
This compares to GBP429m in the 2014/15 tax year, which itself was a strong year for fundraising and is now the fifth highest on record. VCT funds under management to 5 April 2016 (GBP3.6 billion) are slightly up on last year (GBP3.5 billion).
Ian Sayers, Chief Executive, Association of Investment Companies (AIC) says: “The VCT sector has now seen twenty one years of annual fundraising, so it is no mean achievement that this year marks the third highest on record. It is a real vote of confidence in VCT managers from investors and their advisers and a testimony to how well managers are coping with recent VCT rule changes. The pension changes to the lifetime and annual limits have clearly had some impact and this is likely to continue next year with further restrictions for high earners.
“The VCT sector continues to be an important driving force behind the UK’s up and coming businesses, the backbone of the UK economy, and an important catalyst for job creation.”
Highlighting the role of VCTs in supporting the UK economy, it is interesting that research published in February from HM Revenue & Customs suggested that around two-thirds (65 per cent) of VCT investee companies attributed an increase in their sales to VCT investment.
