VCT fundraising 2025/26: the third highest year on record
£917.7 million was raised by Venture Capital Trusts (VCTs) in the 2025/26 tax year, according to figures released by the AIC this week.
This amount, which includes dividend reinvestment, is 2.5% more than was raised in 2024/25, making it the third highest year on record – highlighting the continued importance and appeal of VCTs for UK investors, particularly as taxes on higher earners continue to rise.
The largest VCT fundraises included Albion VCTs (£90 million), British Smaller Companies VCTs (£85 million) and Octopus Apollo VCT (£82.7 million), demonstrating strong demand for well-established managers with track records. You will find more detail on the different VCT offers below.
However, the backdrop to this year’s fundraising included the Chancellor’s decision to reduce the rate of income tax relief on VCTs from 30% to 20% from 6 April 2026.
Venture Capital Trusts often provide the first institutional investment to support the founders of the country’s high-potential SMEs. With a continued scale-up funding gap in the UK, VCTs play a key role in driving the success of these ambitious companies.
VCT tax relief cut: a threat to a British success story?
Since their creation in 1994, VCTs have invested over £12 billion into ambitious early-stage businesses across the UK, playing a vital role in the economy.
In return for generous tax reliefs, VCT investors provide capital that is deployed into early-stage (hence higher risk) and scaling UK businesses. These companies are crucial to economic growth, creating high-quality jobs and driving innovation across a wide range of sectors.
However, there is now a significant challenge facing the VCT market.
In the November 2025 Budget, whilst some VCT rules were improved, the Chancellor also announced that income tax relief on VCT investments will fall from 30% to 20% starting on 6 April 2026. As ever, tax rules can change and benefits depend on circumstances.
The last time income tax relief was reduced, in 2006/07, VCT fundraising fell by 65% year-on-year. While the impact this time may be less severe – given today’s higher tax environment, and fewer alternative tax-efficient investment options – we still expect VCT investment to drop as a result of the change.
The cut in VCT income tax relief from 30% to 20% shifts the risk-reward calculation for investors. Ultimately, that could mean growth capital drying up for some of the UK’s most promising companies. We will be monitoring the situation and will continue to urge the government to reconsider its decision.
The year in numbers and charts
VCT fundraising in 2025/26: overview
29 VCT offers raised funds in 2025/26:
- 6 VCT offers raised over £50 million – these represent over 50% of the total fundraising
- 8 VCT offers raised between £25–50 million (35%)
- 4 VCT offers raised between £10–25 million (7.4%)
- 11 VCT offers raised under £10 million (4.9%)
Despite a slower start, and the uncertainty caused by global conflict and continuing inflation, the pace of investment in VCTs increased significantly after the Budget on 30 November 2025. The British Smaller Companies VCTs offer sold out on 18 December, and five others were also fully subscribed before tax year end.
Play this animated chart to see how the year’s overall fundraising developed:
The figures used in this chart include subscriptions for new VCT shares but do not include dividend reinvestment.
How much did each VCT offer raise in 2025/26?
The Albion VCTs offer opened in October and raised £90 million, continuing their record of reaching their fundraising target in each of the last 10 tax years, with £613 million raised overall.
The British Smaller Companies VCTs offer was the first to close, in December 2025, having reached its £85 million fundraising target. Last year’s highest fundraiser Octopus Apollo VCT was third with £82.7 million raised.
The Northern VCTs increased the size of their offer from £50 million to £80 million in the wake of the Budget announcement, and reached this extended target in March 2026. The Gresham House VCTs (formerly Mobeus VCTs) also brought forward their fundraising plans to 2025/26 in light of the tax relief change.
Several VCTs also exceeded their previous highest fundraising amounts, including the Maven VCTs and Triple Point Venture VCT.
Play the animated chart below to visualise the relative fundraising of the year’s top VCT offers:
This chart includes the top 15 VCT offers by amount raised during the period 5 Sep 2025 to 2 Apr 2026 (the final deadline for the 2025/26 tax year).
Current VCT investment opportunities
Several VCT offers remain open into the 2026/27 tax year – you can compare those offers here.
Remember, the size and speed of a VCT’s fundraise does not necessarily indicate how well the investment will perform in the future. You should form your own considered view and read the offer documents carefully before investing. As always, if you are unsure, seek advice.
Wealth Club aims to make it easier for experienced investors to find information on – and apply for – investments. You should base your investment decision on the offer documents and ensure you have read and fully understand them before investing. The information on this webpage is a marketing communication. It is not advice or a personal or research recommendation to buy, sell or hold any of the investments mentioned, nor does it include any opinion as to the present or future value or price of these investments. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination.
Alex Davies
Chief Executive
Alex was a board director at Hargreaves Lansdown, where he worked for 15 years. He was responsible for building Hargreaves Lansdown into the biggest direct-to-consumer SIPP provider in the UK with more than 150,000 clients and over £12 billion under management. He is a keen investor with a portfolio of shares, funds, student property, EIS and VCT investments.