Tax relief claimed on VCT investment grows

The amount of investment in venture capital trusts (VCTs) on which income tax relief is claimed grew in 2021-22 reflecting the increase in funds raised by such trusts in that tax year according to statistics from HMRC. The department notes however that this information covers claims made through self assessment only and does not cover investors making claims through other systems or not making any claims.

The figures (which have been revised from those released last year) show that in 2021-22 VCT investors claimed income tax relief on £1 040m of investment an increase of 61% from 2020-21. This is in line with the 68% increase in the amount of funds raised by VCTs in 2021-22 compared with the previous year.

In 2021-22 the number of investors claiming tax relief increased by 32% to 25 800.

HMRC states that most...