A venture capital trust (VCT), is a tax efficient UK closed-end collective investment scheme that invests in small companies, either unquoted or trading on the AIM (formerly the Alternative Investment Market) with the intention of returning a profit to investors.

Venture capital trusts, which are generally themselves listed entities on the London Stock Exchange, were introduced by the government in April 1995 and were designed to encourage investors to invest directly in a range of small higher-risk companies whose shares are not listed on a recognised stock exchange.

The maximum investment eligible for income tax relief is £200,000.

VCT Amount Raising Minimum investment Type Initial Charges
Albion £38m £6,000 Generalist 2.5%
Baronsmead £45m £3,000 Generalist 3%
Downing ONE £20m £5,000 Generalist 3%
Foresight 4 £50m £3,000 Generalist 3%
Maven £30m £5,000 Generalist 5%
Mobeus £80m £6,000 Generalist 3.25%
Northern 2 £60m £3,000 Generalist 4%
Octopus Titan £120m £3,000 Generalist 3%
Pembroke £20m £3,000 Generalist 5.5%
Puma 13 £30m £5,000 Limited life 3%
Amati £20m £4,000 AIM 3%

Alternatives to VCTs

EIS funds are an investment vehicle that raises cash from individuals and institutions for the purpose of investing in a portfolio of EIS eligible ventures.

The funds offer up to 30 per cent tax relief for eligible investors. SyndicateRoom has launched two separate EIS funds, find out more here.