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VCT fundraising highest since 2005/6

9 April 2019

The sector has raised £731 million, the highest amount ever at the current level of 30% up-front tax relief.

The Association of Investment Companies (AIC) today published the amount of money raised by Venture Capital Trusts (VCTs) for the 2018/19 tax year. The sector has raised £731 million for investment in small businesses, the highest amount ever raised at the current level of 30% up-front tax relief and the second highest amount since VCTs’ inception. Last year the VCT sector raised £728m.

Ian Sayers, Chief Executive of the Association of Investment Companies (AIC) said: “The 2018/19 fundraising figure reflects consistent high demand for the VCT sector and the growing recognition of the benefits VCTs provide to investors. It is the second highest fundraising figure since VCTs were introduced, boosted by the pension changes and VCTs’ strong long-term record of delivering growth and income returns.

“VCT fundraising is crucial to the UK’s younger companies, as they will benefit from the VCT investment and expertise they need to grow. VCT-backed businesses deliver vital economic, social and environmental benefits, with jobs more than doubling after VCT investment. VCTs invest in important areas like healthcare, technology, education and the environment. VCT investment continues to be a catalyst for change at some of the UK’s fastest growing businesses.”

Historic VCT fundraising figures excl. enhanced share buy-backs

Tax year

Fundraising (£m)

2018/19

731

2017/18

728

2016/17

542

2015/16

457

2014/15

429

2013/14

420

2012/13

269

2011/12

267

2010/11

354

2009/10

338

2008/09

154

2007/08

220

2006/07

267

2005/06

779

2004/05

505

2003/04

50

2002/03

65

2001/02

125

2000/01

433

1999/2000

270

1998/99

165

1997/98

190

1996/97

170

1995/96

160

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Notes

  1. VCT fundraising figures are excluding enhanced share buy-backs.
  2. The Association of Investment Companies (AIC) was founded in 1932 to represent the interests of the investment trust industry – the oldest form of collective investment.  Today, the AIC represents a broad range of closed-ended investment companies, incorporating investment trusts and other closed-ended investment companies and VCTs. The AIC’s members believe that the industry is best served if it is united and speaks with one voice. The AIC’s mission statement is to help members add value for shareholders over the longer term. The AIC has 358 members and the industry has total assets of approximately £184 billion.
  3. Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance.  The value of investment company shares, and the income from them, can fall as well as rise.  You may not get back the full amount invested and, in some cases, nothing at all.
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