VCT & Tax-Efficient Investing

Venture Capital Trusts offer income tax relief of 20% on new share subscriptions of up to £200,000 per tax year, provided the shares are held for at least five years, alongside tax-free dividends and no capital gains tax on disposal. The relief rate reduced from 30% to 20% in April 2026, which changes the maths for anyone who last looked at VCTs before then. VCTs are higher-risk investments in smaller companies and are only suitable for experienced investors who can commit for the long term; we help you judge whether they belong in your plan at all before discussing which ones.

Last reviewed: July 2026