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Venture Capital Trusts

Investment Week 'Tax-Efficient Group of the Year 2018'.


Venture Capital Trusts (VCTs) are an opportunity for you to support the growth of small UK businesses and receive attractive tax reliefs in return.

VCTs support smaller companies that may find it hard to get traditional finance, such as from banks. They were introduced by the UK government in 1995 to encourage individuals to invest in this crucial area of the economy. Some 20,000 new jobs have been created by VCT-backed companies. In the 2016/17 tax year alone, over £540 million was raised by VCTs.

By investing in a VCT, you can benefit from the following tax reliefs:

  • 30% income tax relief on investments up to £200,000 per tax year (shares must be held for at least five years)
  • Tax-free dividends
  • Tax-free capital gains

VCT tax reliefs apply to people aged 18 years or over who are UK income taxpayers, and are only available if the trust maintains VCT status. The relief you receive depends on your individual circumstances.

HM Revenue & Customs law and practice can change over time, if you are unsure about your tax status you should seek independent advice from a professional adviser.


Downing FOUR VCT - Generalist Downing FOUR VCT - Healthcare 


Guide to VCTs 


Venture Capital Trusts products

A VCT with a portfolio of healthcare...
A VCT with a portfolio of growth...

Important Notice

Investing in our products will place your capital at risk and you may not get back the full amount invested. Any tax treatment may be subject to change and the availability and value of the reliefs depend on the individual circumstances of each investor. The availability of tax reliefs also depends on the investee companies maintaining their qualifying status.

Further information can be found at HMRC’s website. Neither past performance or forecasts are reliable indicators of future results and should not be relied upon. Unquoted or smaller company shares are likely to have higher price fluctuations and are likely to be more difficult to sell than shares quoted on the London Stock Exchange Official List. Website content is not intended to constitute investment, tax or legal advice. We recommend you seek independent advice before investing in any of our products.

Important Notice

Downing’s investments place your capital at risk and you may not get back the full amount invested. Past performance and forecasts are not a reliable guide to future results. Tax treatment may be subject to change and depends on individual circumstances. Smaller company shares are likely to have higher volatility and liquidity risks than other types of main market listed instruments. We recommend that you seek professional independent financial advice before investing. We do not offer investment or tax advice.

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