This website uses cookies to improve user experience. By using our website you consent to all cookies in accordance with our Cookie Policy. Read more

VCT Tax Relief

What are the rules around VCTs?

Many investors are attracted by the VCT tax relief offered by these types of investments. The Government introduced VCT tax relief to encourage investors to support fledgling companies. Features of VCT tax relief include:


  • 30% income tax relief upon investment
  • Investment limited to £200,000 per tax year
  • No capital gains tax on dividends
  • Investment must be held for at least 5 years


In order to be eligible for VCT tax relief, you must invest in VCT shares upon its launch, not once it has already been established, but capital gains tax relief is available even if they have already been quoted on the stock market. The income tax relief can be paid as a lump sum, or as part of your salary, but if you withdraw your funds before five years then you will have to repay the tax. Additionally, if the VCT manager fails to invest at least 70% of funds in qualifying investments, the tax relief may be withdrawn and you will have to repay it.


Bear in mind that the Government reserves the right to change the level, basis and relief from taxation. Additionally, venture capital trusts offer a higher risk than other types of investment and the VCT tax relief should not be the only reason for investing.

Compare VCTs in the table below:

Compare Generalist VCTs
 Minimum InvestmentAmount RaisingAmount Raised†Initial Charge*More Info
£5,000£20m£0m5.50% 4.50%More Info >

†As at 05/11/2014

*If you invest via Fair Investment Company if indicated a discount off the standard initial charge is available.


The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below

 Important Risk Information:

This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. The tax efficiency of VCTs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.

Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.