Estimated reading time: 2 min

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

1. You could lose all the money you invest

• If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.

2. You are unlikely to be protected if something goes wrong

• Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.

• Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection here.

3. You won’t get your money back quickly

• Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.

• The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.

• If you are investing in a start-up business, you should not expect to get your money back through dividends. Start-up businesses rarely pay these.

4. Don’t put all your eggs in one basket

• Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.

• A good rule of thumb is not to invest more than 10% of your money in high-risk investments.

5. The value of your investment can be reduced

• The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.

• These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.

If you are interested in learning more about how to protect yourself, visit the FCA’s website here.

Venture Capital Trusts

Help small companies grow, save income tax and receive tax-free dividends

A Venture Capital Trust (VCT) is a publicly listed investment company run by a fund manager. It aims to make money by investing in small, unquoted, entrepreneurial companies and helping them grow.

When you as a private investor buy shares in a VCT, you get exposure to a portfolio of small companies. The government is keen for experienced investors to invest in this kind of company, because they create jobs and support economic growth. However, investing in small businesses is risky. To help compensate for this, the government offers generous tax benefits:

Up to 30% tax relief – save up to £60,000 on your income tax bill when you invest in newly issued VCT shares
Tax-free dividends – no need to declare VCT dividends on your tax return
Tax-free growth – no CGT on gains
Generous allowance – invest up to £200,000 per tax year

Remember, tax rules can change and tax benefits depend on circumstances.

See all current VCT offers below – you can read our reviews, download the documents and apply online. We also list VCT offers coming soon – you can register your interest for free VCT alerts as soon as offers go live.

Available VCT offers

Our featured offers. The current offers with the most investment merit, in our view. Find out more about how we choose.

Product Sort by value	Type Sort by value	Target dividend	Initial charge Sort by value	Initial saving via Wealth Club Sort by value	Net initial charge Sort by value	Annual rebate Sort by value	Funds raised / sought Sort by value	Deadline Sort by value	Invest now
Our choice Mobeus VCTs Long-established trusts investing across different sectors and stages of maturity.	Generalist	7% of NAV	3%	0.5%	2.5%	0.10%	£41.6m / £70m	24 Sep 2024 (noon) for first allotment	Prospectus (PDF, 2.1MB) Key Information Documents (PDF, 403.0kB)
Our choice Octopus Apollo VCT Managed by Octopus Ventures, the VCT invests in revenue-generating businesses with a bias towards B2B software companies	Generalist	5% of NAV	5.5%	2.5% (3.5% existing investors)	3% (2% existing investors)	0.10%	£80.2m / £85m 94% full	18 Oct (5pm) for Oct 2024 allotment	Second Supplementary Prospectus (PDF, 123.6kB) Supplementary Prospectus (PDF, 162.9kB) Prospectus (PDF, 1.3MB) Brochure (PDF, 3.9MB) Key Information Document (PDF, 310.7kB)
Our choice ProVen VCTs Established VCTs with a track record of investing in growth capital companies, particularly e-commerce.	Generalist	5% of NAV	5.5%	3%	2.5%	0.10%	£24.8m / £30m 82% full	27 Sep 2024 (3pm) for final allotment	Key Information Documents (PDF, 139.9kB) Securities Note (PDF, 5.3MB) Supplementary Prospectus (PDF, 270.4kB) Summary (PDF, 173.0kB) Registration Document (PDF, 571.9kB)
British Smaller Companies VCTs Two of the longest-established VCTs, managed by YFM Equity Partners. Click the link above to read our full review.	Generalist	-	-	-	-	-	-	Coming soon
Fuel Ventures VCT New VCT from experienced EIS and SEIS manager, focusing on early-stage digital businesses backed by Fuel’s other funds	Generalist	4p per share from 2027	5.5%	5.5%	0%	–	£9.3m / £10m 92% full	29 Nov 2024 (5pm) for final close	Prospectus (PDF, 3.1MB) Key Information Document (PDF, 209.4kB)
Guinness VCT A new VCT from Guinness – the global fund manager and one of the UK’s largest EIS investors.	Generalist	-	-	-	-	-	-	Coming soon
Maven VCTs Long-established and well diversified combined portfolio of more than 100 private and AIM-quoted companies. Read full review	Generalist	-	-	-	-	-	£20m sought	Coming soon
Octopus AIM VCTs A well established portfolio of largely profitable AIM companies plus earlier-stage businesses	AIM	-	-	-	-	-	-	Coming soon
Octopus Future Generations VCT Sustainability focused VCT from the UK’s largest VCT manager	Sustainability focus	5% of NAV from 2025	3%	1% for existing investors	3% (2% existing investors)	0.10%	£3.4m / £15m	4 Oct 2024 (5pm) for final close	Brochure (PDF, 5.5MB) Key Information Document (PDF, 225.9kB) Prospectus (PDF, 1.5MB)
Pembroke VCT With net assets of £213.9 million and a portfolio of c.45 companies, Pembroke VCT looks to back young companies developing brands with premium pricing potential.	Generalist	-	-	-	-	-	-	Coming soon
Praetura Growth VCT New VCT from an experienced EIS manager, targeting regional businesses in technology and healthcare	Generalist	-	-	-	-	-	-	Coming soon
Puma Alpha VCT The VCT aims to invest in scale-up opportunities alongside Puma’s other funds.	Generalist	5p per share	3%	1% for existing investors	3% (2% for existing investors)	0.15%	£1.7m / £15m	2 Dec (5pm) for 2024/25	Second Supplementary Prospectus (PDF, 118.4kB) Supplementary Prospectus (PDF, 134.9kB) Prospectus (PDF, 10.5MB) Key Information Document (PDF, 113.7kB)
Puma VCT 13 VCT focusing on scale-up opportunities across different sectors	Generalist	-	-	-	-	-	-	Coming soon
Triple Point Venture VCT The VCT invests primarily in early-stage B2B companies	Generalist	5p per share	5.5%	4% (5% existing investors)	1.5% (0.5% existing investors)	0.10%	£10m sought	Limited early bird capacity	Prospectus (PDF, 800.1kB) Brochure (PDF, 8.1MB) Key Information Document (PDF, 189.3kB)
Albion VCTs Long-established VCTs with a diversified portfolio of c.70 technology and scale-up companies	Generalist	-	-	-	-	-	£60m / £60m	CLOSED
Baronsmead VCTs The Baronsmead VCTs are amongst the longest-standing and most diverse of all VCTs. They give investors access to a portfolio of more than 85 companies. Click the link above to read our full review.	Generalist	-	-	-	-	-	£50m / £50m	CLOSED
Blackfinch Spring VCT Young VCT targeting tech-enabled businesses disrupting existing markets	Generalist	-	-	-	-	-	£15m / £20m	CLOSED
Calculus VCT Calculus VCT invests in early-stage companies, with a focus on technology, healthcare, and entertainment.	Generalist	-	-	-	-	-	£8m / £10m	CLOSED
Hargreave Hale AIM VCT An established offer from a well-regarded fund management house. This VCT invests in both AIM and unquoted companies, differentiating it from other AIM VCTs in our view.	AIM	-	-	-	-	-	£20m / £20m	CLOSED
Molten Ventures VCT Molten Ventures VCT invests in early-stage digital technology businesses, often alongside FTSE listed Molten Ventures plc (formerly Draper Esprit), favouring the consumer technology, enterprise technology, deep tech & hardware, and digital health & wellness sectors.	Generalist	-	-	-	-	–	£15.9m / £20m	CLOSED
Northern VCTs The three Northern VCTs are among the longest-running and have built up a strong investor following over the years.	Generalist	-	-	-	-	-	£60m / £60m	CLOSED
Octopus Titan VCT The UK's largest VCT focuses on early-stage tech companies with high growth potential	Generalist	-	-	-	-	-	£106.8m / £125m	CLOSED
Seneca Growth Capital VCT A growth-focused VCT share class managed by Seneca Partners, investing in a mix of unquoted and AIM quoted companies. Click the link above to read our full review.	Generalist	-	-	-	-	-	£1.6m / £10m	CLOSED
Unicorn AIM VCT Unicorn is a specialist smaller companies fund manager. The manager looks for companies with experienced management teams and strong cash generation, with the potential to pay and grow dividends over time. Click the link above to read our full review.	AIM	-	-	-	-	-	£20m / £20m	CLOSED

Free factsheet: VCTs at a glance

Free factsheet: EIS at a glance

Free factsheet: SEIS at a glance

Free report: How to make your ISA IHT free

Venture Capital Trusts

Help small companies grow, save income tax and receive tax-free dividends

Available VCT offers

More about Venture Capital Trusts

Home

VCTs Explained

VCT Tax Relief

How to claim VCT tax relief

News about Venture Capital Trusts. Read all

Venture Capital Trusts

Help small companies grow, save income tax and receive tax-free dividends

Available VCT offers

More about Venture Capital Trusts

Home

VCTs Explained

VCT Tax Relief

How to claim VCT tax relief

News about Venture Capital Trusts. Read all

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