Another bumper year for venture capital trusts

The amount invested in venture capital trusts (VCTs) in 2022-23 was £1.08bn the second highest on record according to figures from the Association of Investment Companies (AIC). This represents a 5% decrease compared with the 2021-22 tax year (£1.13bn) which was a record year for fundraising.

During the 2022 calendar year VCTs invested £700m in new and follow-on investments in small private companies and Alternative Investment Market (AIM) companies in the UK. Most - £652m (93%) - was invested in private companies with £48m invested in AIM-quoted companies.

Richard Stone AIC chief executive said: ‘During a tough year for investors demand for VCTs remains near record levels demonstrating the numerous benefits they bring. VCTs have been around for over 25 years and are a trusted tax-efficient scheme. They have strong long-term performance with the average VCT returning 108% over ten years....