Why tax makes venture capital trusts an investment worth considering

From an early stage in their career every tax adviser is reminded to take care not to let the tax tail wag the commercial dog. In addition we need to take care not to be giving investment advice that we are not qualified to give. Before taking any action based on the following it is important to take appropriate investment advice from a suitably qualified source. Many taxpayers have allowed themselves to be seduced by tax efficient investments that without the tax aspect were poor. Film partnerships come to mind. When the tax has not worked out as intended the poor investment has become a dreadful one. Given that venture capital trusts (VCTs) benefit from a beneficial tax regime should we be seduced?

Given that £688m was invested in VCTs in 2020-21 according to recent data from the Office of National Statistics...