Are investors still putting money in VCTs?

Archived article

Archived article: please remember tax and investment rules and circumstances can change over time. This article reflects our views at the time of publication.

These are testing times – for people, economies and stock markets. 

The impact of the ever-changing current situation on stock markets around the world is well documented. 

But what about VCTs?

In our recent article, we looked at the impact on valuations. Here we focus on fundraising. 

The 2019/20 tax year has just ended. Under normal circumstances, we would have expected VCT fundraising to accelerate from mid-March. 

Unsurprisingly, this has not been the case this year. We have contacted the managers of all the VCTs with share offers open in the final three weeks of the tax year to obtain the latest fundraising information. 

£46.8 million invested in the three weeks to 5 April

The last three weeks have seen a drop of more than half in investment volumes compared to the same three weeks last year.

That said, there was still some investor appetite for VCTs. The offers open in the final three weeks of the tax year received a total of £46.8 million in new investment in the period, with the most popular, Octopus Titan VCT (now closed), attracting over £16 million – see breakdown below.

Data compiled by Wealth Club, based on information provided by each VCT’s manager, as at 5 April 2020. Click on each column in the chart to go to the relevant VCT offer page.

Wealth Club aims to make it easier for experienced investors to find information on – and apply for – tax-efficient investments. You should base your investment decision on the provider's documents and ensure you have read and fully understand them before investing. This review is a marketing communication. It is not advice or a personal or research recommendation to buy the investment mentioned. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination.

12 VCT offers open for 2020/21

We provide up-to-date information on all current VCT offers, including capacity and deadlines. You can apply online for all of them.

See all VCT current offers and apply online