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Skip to: Home Content Footer navigation. Introduction to Venture Capital Trusts. You may also be interested in The value of investments can fall as well as rise. Research Centre For help with your individual share selections use our tools that allow you to research UK market indexes and daily share movements. Visit the Research Centre. Shares Shares suit a wide variety of investment strategies, although they can carry higher risks than funds. Shares explained. Investments Explained You can choose from thousands of investments to build a portfolio to match your needs, and with our expert insight, tools, tips and more, we can help guide you on your investment journey though we cannot advise you on investments that might be suitable for you.
Investments overview. The managers of the VCT then have three years in which to invest this money. If an investment is held in a company that becomes quoted on the London Stock Exchange then it can continue to be treated as a qualifying VCT investment for up to five years. VCTs can usually be classified according to the following criteria: . The amounts raised since income tax relief was set at 30 per cent are as follows: . From Wikipedia, the free encyclopedia.
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Information about the data sources and methodology can now be found in the Background quality report. The next release of these statistics will be in December If you would like to comment on these statistics, please see the contacts named at the end. The VCT scheme, introduced in , is one of four tax-based venture capital schemes. For more information about Venture Capital Trusts and the policy background, see the Venture Capital Trusts statistics: Introductory note.
As seen in Figure 1, the amount of funds raised by VCTs has been on a rising trend in recent years and has more than doubled since to This made traditional pensions less attractive, and the introduction of pension freedoms which allow for cash to be taken out of the pot for investment rather than buying an annuity, meaning there is more freedom for investment in alternatives such as VCTs. The slight decrease in funds raised in to is likely to be a reaction to the VCT reforms introduced in , but which came into effect during later accounting periods and potentially due to the impacts of Covid towards the end of the tax year.
However, this has been less evident in recent years where similar amounts of funds have been raised by a smaller number of larger VCTs. The amount raised by VCTs has remained stable from tax year to to tax year to There has been a slight increase in the amount raised by VCTs in to , though the number of VCTs raising funds has decreased, reflecting further concentration of the VCT market. Since to , the number of VCTs managing funds has generally been decreasing, dropping to 57 in to This information only covers claims made through Self Assessment and will not cover investors making Income Tax relief claims through other systems for example PAYE or not making any claims.
Table 2a and Table 2b presents the distribution of investors claiming Income Tax relief under the VCT scheme, and the amounts invested. Total figures provided in Table 2a and 2b on the amount of investment on which Income Tax relief was claimed are not directly comparable with the figures on the amount of investment received by VCTs in a tax year shown in Table 1, as an amount of relief would be claimed outside Self Assessment, or not claimed at all.
In to , there was a significant decrease in the number of VCT investors compared to the previous year. However, this is consistent with the reduction in funds raised by VCTs in to see Table 1. This is likely an impact of the reforms to VCT investment conditions which were introduced in but began to take effect in later accounting periods. The Covid pandemic also may have acted to reduce investment towards the end of to as uncertainty increased across the economy.
Figure 3 shows the distribution of the investors claiming VCT relief grouped by size of investment. Figure 4 shows a time series of the number of investors who have claimed VCT relief from to The tax year to saw the largest number of investors since to This reflects the increase in funds raised seen in Figure 1 as a result of pension changes and the Patient Capital Review.
Figure 6 shows that the amount of relief claimed and total funds raised by VCTs are largely consistent year on year. The remaining amounts are assumed to be either claimed outside Self Assessment or not claimed at all. Statistical contacts: S Nath and G Dobson; venturecapital.
To help us improve GOV. It will take only 2 minutes to fill in. Cookies on GOV. UK We use some essential cookies to make this website work. Accept additional cookies Reject additional cookies View cookies. Hide this message. Home Investment schemes Venture Capital Trusts: VCTs are a form of publicly traded private equity , comparable to investment trusts in the UK or business development companies in the United States. They were introduced by the Conservative government in the Finance Act  to encourage investment into new UK businesses.
VCTs tend to have a minority stake in the businesses they invest in, as opposed to private equity investing, where a majority stakeholder position is held. Tax reliefs are different for investors in new shares issued by VCTs and investors who purchase second-hand shares, for example on the stock market.
For new shares, the same reliefs are available, and in addition . Compared with the issue price of new shares in VCTs, the price of VCT shares on the stock market second-hand shares tends to be lower, reflecting the absence of income tax relief. VCTs raise funds through issues of new shares. The managers of the VCT then have three years in which to invest this money. If an investment is held in a company that becomes quoted on the London Stock Exchange then it can continue to be treated as a qualifying VCT investment for up to five years.
VCTs can usually be classified according to the following criteria: . The amounts raised since income tax relief was set at 30 per cent are as follows: . From Wikipedia, the free encyclopedia.
The VCT is a closed-end fund that was created by the U.K. government in the s to help direct investment into local private businesses. These funds are tax-. VCTs are a form of publicly traded private equity, comparable to investment trusts in the UK or business development. VCTs (Venture Capital Trusts) are investment companies that are listed on the London Stock Exchange and set up to invest in small UK businesses that meet.