Stressed by tax?
Get Earnr Pro

Venture Capital Trust

[ˈvɛnʧə ˈkæpɪtl trʌst]



A Venture Capital Trust is an investment fund specialising in early stage businesses. Investors in a VCT can receive income tax relief and tax-free dividends.

More detail:

A Venture Capital Trust is an investment company that specialises in investing in small and early stage companies. The investment managers in control of these funds believe that these small companies have a high growth potential.

A Venture Capital Trust provides capital for these growing businesses. They are often run by individuals who have run successful startups in the past so a Venture Capital Trust can also provide guidance, and give the businesses the best chance of succeeding.

A Venture Capital Trust can provide a Tax-efficient method of investing. Individuals can invest up to £200,000 per year while receiving a 30% Income Tax relief. Individuals can also receive tax relief on income from dividends.

HMRC must approve the VCT and the VCT must invest in unlisted companies.

Back to Taxionary

You might also like...

decorative image for a blog

What is IR35 and do I need to worry about it?

There are loads of different tax laws in the United Kingdom. IR35 is very important to freelancers and contractors but can be a little confusing. Here, we explain simply what IR35 is and who it can affect.

Read more
decorative image for a blog

Flat rates for mileage vs actual expenses. What is better?

Self-employed individuals can use two different methods to expense business vehicle costs. Here, we investigate the positive and negatives for both methods and which one might be right for you.

Read more
decorative image for a blog

What is the EIS and how does it work?

If you are looking to invest in small and medium sized businesses, the Enterprise Investment Scheme (EIS) provides lots of tax reliefs for doing so. Here we discuss what it is and how it works.

Read more
Earnr logoDownload earnr