Venture Capital Trust (VCT) scheme

Venture Capital Trust (VCT) scheme is a government tax relief for startup investment in the UK. HMRC-approved investment companies (VCTs) that raise money from individual investors and invest it in, or lend it to, unlisted qualifying trading companies. Investors get 20% Income Tax relief (reduced from 30% from April 2026) on up to £200,000 a year plus tax-free dividends, and since 6 April 2026 most companies receiving VCT investment can raise up to £10 million a year and £24 million in their lifetime.

What it offers

• “Investors subscribe for shares in a VCT, which then onward invests in qualifying trading companies, providing them with funds to help them develop and grow.” — gov.uk
• “Income Tax Relief – individual shareholders aged 18 or over can claim Income Tax relief at the rate of 20% of up to £200,000 annual investment, provided their shares are held for at least five years” — gov.uk
• “The rate of income tax relief available was reduced from 30% to 20% from April 2026 onwards.” — gov.uk
• “The new annual limits are £20 million for knowledge intensive (KI) companies and £10 million for other companies.” — gov.uk
• “The new lifetime limits are £40 million for KI companies and £24 million for other companies.” — gov.uk
• “You do not need to pay Income Tax on any dividends from a Venture Capital Trust (both for newly-issued shares and those previously owned).” — gov.uk
• “This measure extends those sunset clauses to 6 April 2035, continuing the availability of Income Tax relief for investors in qualifying companies and VCTs” — gov.uk

Who can apply

• “no more than £30 million in gross assets (£15 million for specified companies)” — gov.uk
• “not been more than 7 years since its first commercial sale” — gov.uk
• “The gross asset test thresholds were increased from £15 million immediately before share issue and £16 million immediately after, to £30 million immediately before share issue and £35 million immediately after.” — gov.uk
• “not be listed on a recognised stock exchange at the time of investment” — gov.uk
• “You can invest in a Venture Capital Trust if you're over 18 years old.” — gov.uk
• “You must keep your whole investment in a Venture Capital Trust for 5 years.” — gov.uk
• “The pre-April 2026 limits continue to apply to specified companies” — gov.uk
• “For Venture Capital Trusts, you'll need to tell us both the:” — gov.uk

Stages

Seed, Growth

How to apply

Apply or read the rules on the official site.

About this listing

TrustList compiled this listing from Venture Capital Trust (VCT) scheme's official pages in September 2026. The quotes above are its own words. Amounts, deadlines and eligibility rules change, so check the official site before you rely on them.