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Venture Capital Trusts statistics: 2026

ended 21. May 2026

HMRC has published the latest data on VCTs >> here <<. Key findings below but full report worth a scan. Any thoughts on the data, the role you think VCTs should play in a portfolio (if at all) and the tax reliefs available, send them across. Also, why do you think there has been a sharp fall in the number of people investing in VCTs?

  • Venture Capital Trusts (VCTs)  raised funds to the value of £881 million in 2024 to 2025, which is 1% higher compared to the 2023 to 2024 figure of £872 million.
  • The amount of VCT investment on which Income Tax relief was claimed increased by 1% in 2024 to 2025, compared to the previous year. The number of investors has decreased by 8% to 22,430 in 2024 to 2025. This information only covers claims made through Self Assessment and will not cover investors making Income Tax relief claims through other systems (for example PAYE) or those not making any claims.
  • In the 2024 to 2025 tax year, there was a significant decrease in the number of VCT investors compared to the previous year.
  • Most investors tend to invest under £50,000 into VCT funds. The average amount invested by an individual in the 2024 to 2025 tax year was around £37,000.

5 responses from the Newspage community

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Nouran Moustafa
Practice Principal & IFA at Roxton Wealth
VCTs have a role, but they are not a normal investment and they are definitely not something people should buy just because the tax relief looks attractive. The latest HMRC data is interesting because money raised has held up, but the number of investors has fallen. To me, that suggests VCTs are becoming more concentrated among wealthier, tax-aware investors, rather than broadening out.
That makes sense. VCTs are high risk, illiquid, and invest in smaller companies where outcomes can be very uneven. They can work for experienced investors who have already used pensions and ISAs, have capacity for loss, and want tax-efficient exposure to UK growth companies. But they should sit around the edges of a portfolio, not at the centre of someone’s retirement plan.
The fall in investor numbers is probably down to higher interest rates, cost-of-living pressure, weaker confidence in smaller companies, and people becoming more selective. VCTs are useful, but they are specialist planning tools.
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Martin Rayner
Financial Adviser at Compton Financial Services
The VCT market remains resilient, yet the drop in investor numbers signals greater selectivity. Higher interest rates, economic uncertainty and attractive lower-risk returns have curbed appetite for pure tax-driven venture bets.

EIS is gaining ground. April 2026 changes now allow EIS into larger, established companies, offering tax efficiency without ultra-early-stage risks.

VCTs fit best as specialist satellite holdings for experienced investors who’ve maxed pensions and ISAs. Their risk and illiquidity demand strong diversification.

Post-April 2026, VCTs deliver 20% upfront relief, tax-free dividends and CGT-free gains after five years. EIS offers 30% relief, CGT deferral and 100% IHT Business Relief after two years. With pensions entering IHT scope in 2027, EIS is the rising choice for growth and estate planning
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Samuel Mather-Holgate
Managing Director & IFA at Mather and Murray Financial
No doubt VCTs had a good year last year as people piled in to make use of the 30% relief. With Rachel Reeves slashing this to 20% new investment is likely to fall off a cliff this tax year, as investors look to make use of their pension or EIS style funds which still offer the generous, higher relief.
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Eugen Neagu
Director at N2 Asset Management Limited
From an investor point of view, a VCT investment does not make any sense. It is not the investor who benefits from the tax relief, but the companies which receive the investments. Due to arbitrage, once listed on the stock exchange, those VCT shares will always trade at a 30% discount as long as the VCT is still open for new investments, as many investors would be able to subscribe new shares with 30% tax relief.

Even when the VCT is closed to new subscriptions, discounts tend to be high, most likely above 30%, as closures are a result of very poor investment performance. From a financial planner point of view it is very important that we tell the truth to our clients.
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Graham Nicoll
Financial Planner, Chartered FCSI at NCL Wealth Partners
Although the total invested remained level, the significant drop in numbers is a major red flag and a response to short sighted changes by the chancellor in recent budgets that will likely impact UK economic growth.

The sharp fall reflected widespread anxiety ahead of the April 2026 tax changes. Savvy smaller investors, who typically invest under £50,000 (averaging £37,000) pulled back early as the prospect of the income tax relief cut from 30% to 20% took hold, leaving wealthier individuals to plug the gap with larger ticket sizes.

With upfront relief now slashed to 20%, VCTs are no longer a default tax-planning tool for the mass affluent. However, they still provide vital tax-free dividends and CGT exemptions. For high-net-worth individuals, with surplus income, who have maxed out pension allowances, a VCT remains a useful satellite allocation, but only for those who can tolerate higher risk and illiquidity for the mandatory 5 year hold, necessary to retain the full tax benefits.