Venture Capital Trusts: Why higher-rate taxpayers might want to invest in them

For some investors, particularly higher-rate taxpayers, Venture Capital Trusts (VCTs) could offer an attractive and tax-efficient investment prospect. Read on to discover the basics you need to know if you’re thinking about making VCTs part of your financial plan.

VCTs are listed companies that invest in UK businesses. These are typically smaller and younger firms than those you might access through other funds. They could include a range of businesses from technology start-ups to consumer goods companies.

When you invest in a VCT, you become a shareholder in the trust, rather than in individual companies. Your investment would be spread across the VCT’s investment portfolio.

As of 2025, VCTs have been operating for 30 years. According to figures released in November 2024 by the