VCT fundraising in 2025/26 tax year third highest on record

Venture capital trusts (VCTs) raised a total of £918m in the tax year that has just ended, 3% higher than the amount raised in the previous tax year (£895m) and the third highest annual fundraising on record, according to figures released today by the Association of Investment Companies (AIC).

VCTs invest in innovative, fast-growing UK companies. Money raised in the 2025/26 tax year was eligible for upfront income tax relief at 30%, while money raised in the current tax year will attract relief at 20%.

A table of VCT fundraising since 2010/11 can be found below.

Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “A strong year of fundraising by VCTs is good news for young, ambitious UK companies with growth potential. This is money VCTs can use to help their current investee companies scale up, as well as identifying exciting new opportunities they can help to get off the ground.

“Unfortunately, fundraising this tax year is likely to be a different story. The cut in income tax relief from 30% to 20% shifts the risk/reward calculation for investors and ultimately that will mean growth capital drying up for some of the UK’s most promising companies. We will be monitoring the situation and will continue to urge the government to reconsider its decision.”

Chris Lewis, Chair of the VCT Association, said: “VCTs often provide the first institutional investment to support the founders of the country’s high-potential SMEs. With a continued scale-up funding gap in the UK, VCTs play a key role in driving the success of these ambitious companies.

“While this year’s total market raise of £918m is marginally ahead of last year, the recent reduction in the initial tax relief from 30% to 20% means it is unclear how much of next year’s fundraising has simply been brought forward.

“We encourage the UK government to reconsider its decision and to adopt a range of other enhancements to ensure the continued strength and growth of VCTs for UK founders and retail investors.”

VCT fundraising by tax year