Venture Capital Trusts statistics: 2025
Published 14 May 2025
© Crown copyright 2025
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1. Main findings
The number of Venture Capital Trusts (VCTs) managing funds has increased in the tax year 2023 to 2024 whilst the amount of investment raised by VCTs has decreased compared to 2022 to 2023.
The amount of investment Income Tax relief is claimed on decreased in 2023 to 2024, reflecting the decrease in funds raised by VCTs in that tax year.
1.1 Headlines
- Venture Capital Trusts (VCTs) issued shares to the value of £873 million in 2023 to 2024, which is a 17% decrease in comparison to the 2022 to 2023 figure of £1,051 million
- the number of VCTs raising funds has remained consistent in the 2023 to 2024 tax year
- the number of VCTs managing funds has increased by 2, to 51 in the tax year 2023 to 2024
- in 2023 to 2024, Venture Capital Trust (VCT) investors claimed Income Tax (IT) relief on £810 million of investment. This is a decrease of 19% from 2022 to 2023
- the number of VCT investors who claimed Income Tax relief has decreased by 9% to 24,085 in 2023 to 2024
2. Introduction
2.1 About these statistics
This is an annual National Statistics publication of Venture Capital Trusts (VCTs) statistics.
Section 3 (number of VCTs and funds raised) includes figures covering the period up to tax year 2023 to 2024. This section utilizes HMRC administrative data, improving the quality of the underlying data. Section 4 (investors claiming relief on VCT investments) includes first estimates for 2023 to 2024. The deadline for submitting Self Assessment returns for the tax year 2023 to 2024 was 31 January 2025 but individuals may submit late claims. Therefore, the data for 2023 to 2024 is partial for this publication and has been uplifted to account for potential late returns. Further information about the data sources and methodology can be found in the Background Quality Report.
In Table 1, figures for the 2022 to 2023 tax year are revised and are provisional for the 2023 to 2024 tax year.
In Tables 2a and 2b, figures prior to the 2023 to 2024 tax year are revised. Figures for the 2023 to 2024 tax year are provisional and are uplifted to account for potential late returns.
The next release of these statistics is expected to be in Spring 2026. If you would like to comment on these statistics, please see the contacts named at the end.
2.2 What are Venture Capital Trusts?
The VCT scheme, introduced in 1995, is one of three tax-based venture capital schemes that were active in the 2023 to 2024 tax year. VCTs raise funds for investments, normally annually, through new and/or top-up share issues to investors.
For more information about Venture Capital Trusts and the policy background, see the Venture Capital Trusts statistics: Introductory note.
3. Amount of funds raised and number of Venture Capital Trusts
Values listed under “new series” utilise HMRC administrative data which improves the quality of the underlying data. Values listed under “old series” provide information on the number of VCTs and funds raised are obtained from publicly available internet sources, mainly FE Investegate VCTs information and news announcements. From the tax year 2022 to 2023, only the new series will be reported. In the 2026 release of the publication, comparisons between the new and old series between 2019 to 2020 and 2021 to 2022 will be removed, reporting only the values in the new series.
Table 1 provides information for tax years 2022 to 2023 onward using new administrative data only. It also provides a comparison between the old and new series for tax years 2019 to 2020 to 2021 to 2022 which show that both series follow the same trends and any differences between the two series are small. The funds raised shown by both series increase over the three years, reaching a peak in 2021 to 2022.
The number of VCTs raising and managing funds between tax year 2019 to 2020 and tax year 2021 to 2022 also follow the same trend across the two series, with a difference of just one VCT raising funds in 2021 to 2022 and one VCT managing funds in 2019 to 2020.
Amounts raised have been rounded to the nearest £5 million for data up to 2016 to 2017 and £1 million for 2017 to 2018 onward.
Table 1: Amount of funds raised and number of Venture Capital Trusts (VCTs) by year, 1995 to 1996 to 2023 to 2024
| Year | Funds raised, New Series (£ million) | Funds raised, Old Series (£ million) | VCTs raising funds, New Series | VCTs raising funds, Old Series | VCTs managing funds, New Series | VCTs managing funds, Old Series | Rate of IT relief (%) |
|---|---|---|---|---|---|---|---|
| 1995-96 | not applicable | 160 | not applicable | 12 | not applicable | 12 | 20 |
| 1996-97 | not applicable | 170 | not applicable | 13 | not applicable | 18 | 20 |
| 1997-98 | not applicable | 190 | not applicable | 16 | not applicable | 26 | 20 |
| 1998-99 | not applicable | 165 | not applicable | 11 | not applicable | 34 | 20 |
| 1999-00 | not applicable | 270 | not applicable | 20 | not applicable | 43 | 20 |
| 2000-01 | not applicable | 450 | not applicable | 38 | not applicable | 61 | 20 |
| 2001-02 | not applicable | 155 | not applicable | 45 | not applicable | 70 | 20 |
| 2002-03 | not applicable | 70 | not applicable | 32 | not applicable | 71 | 20 |
| 2003-04 | not applicable | 70 | not applicable | 31 | not applicable | 71 | 20 |
| 2004-05 | not applicable | 520 | not applicable | 58 | not applicable | 98 | 40 |
| 2005-06 | not applicable | 780 | not applicable | 82 | not applicable | 108 | 40 |
| 2006-07 | not applicable | 270 | not applicable | 32 | not applicable | 121 | 30 |
| 2007-08 | not applicable | 230 | not applicable | 54 | not applicable | 131 | 30 |
| 2008-09 | not applicable | 150 | not applicable | 46 | not applicable | 129 | 30 |
| 2009-10 | not applicable | 340 | not applicable | 68 | not applicable | 122 | 30 |
| 2010-11 | not applicable | 350 | not applicable | 78 | not applicable | 128 | 30 |
| 2011-12 | not applicable | 325 | not applicable | 76 | not applicable | 124 | 30 |
| 2012-13 | not applicable | 400 | not applicable | 65 | not applicable | 118 | 30 |
| 2013-14 | not applicable | 440 | not applicable | 66 | not applicable | 97 | 30 |
| 2014-15 | not applicable | 435 | not applicable | 57 | not applicable | 94 | 30 |
| 2015-16 | not applicable | 445 | not applicable | 45 | not applicable | 80 | 30 |
| 2016-17 | not applicable | 570 | not applicable | 38 | not applicable | 75 | 30 |
| 2017-18 | not applicable | 705 | not applicable | 43 | not applicable | 68 | 30 |
| 2018-19 | not applicable | 716 | not applicable | 42 | not applicable | 61 | 30 |
| 2019-20 | 606 | 645 | 43 | 43 | 60 | 61 | 30 |
| 2020-21 | 682 | 668 | 40 | 40 | 57 | 57 | 30 |
| 2021-22 | 1112 | 1122 | 45 | 46 | 52 | 52 | 30 |
| 2022-23 | 1051 | not applicable | 45 | not applicable | 49 | not applicable | 30 |
| 2023-24 | 873 | not applicable | 45 | not applicable | 51 | not applicable | 30 |
Venture Capital Trusts (VCTs) have raised funds to the value of £873 million in 2023 to 2024, which is 17% lower than the 2022 to 2023 figure of £1,051 million.
Figure 1: Amount of funds raised by VCTs (£ million), 1995 to 1996 to 2023 to 2024
Figure 1 reports the funds raised by VCTs using the old series between tax years 1995 to 1996 to tax year 2018 to 2019. From the 2019 to 2020 tax year, funds raised are presented using the new series, with the change in series marked by the black vertical dashed line. The amount of funds raised by VCTs has been on a rising trend in recent years and has more than doubled since the 2009 to 2010 tax year. Much of this increase is likely due to the increasing appeal of the tax benefits of VCT investment as an alternative or addition to pension investment where allowances have been reduced or capped in the same period. This made traditional pensions less attractive, and the introduction of pension freedoms, which allow for cash to be taken out of the pot for investment, rather than buying an annuity, means there is also more freedom for investment in alternatives such as VCTs.
Whilst the impacts of Covid-19 would have affected the end of the 2019 to 2020 tax year, funds raised in 2020 to 2021 increased slightly despite covering the main pandemic period. Funds raised in the 2021 to 2022 tax year increased substantially which may be, in part, the result of a strong recovery from the Covid-19 pandemic. Additionally, the VCT market broadly follows the wider venture capital market and 2021 to 2022 was a particularly strong fundraising year for the venture capital industry. In the tax year 2022 to 2023, the slight decrease in amount of funds raised is likely a reflection of a slowdown in the wider venture capital industry, but the value of funds raised remained the second highest on record. This trend is continued into the 2023 to 2024 tax year with a further decrease in the value of funds raised, again following the trends seen in the wider venture capital industry. It is worth noting that despite the decrease of funds raised experienced in 2023 to 2024, the values raised by VCTs still remain the third highest on record.
Figure 2: Number of VCTs raising and managing funds, 1995 to 1996 to 2023 to 2024
Figure 2 reports the number of VCTs raising and managing funds using the old series for tax year 1995 to 1996 to tax year 2018 to 2019. From tax year 2019 to 2020 onwards, funds raised are presented using the new series. The change in series is marked by the black vertical dashed line.
The number of VCTs raising funds in 2023 to 2024 has remained consistent at 45. In the past, the amount of funds raised by VCTs and the number of VCTs raising funds have been closely linked. However, this has been less evident in recent years where similar amounts of funds have been raised by a smaller number of large VCTs. This trend continued in to 2022 to 2023 with funds raised reaching the second highest level but the number of VCTs raising funds remaining consistent. In 2023 to 2024 there is a further decrease in the value of funds raised, whilst the number of VCTs raising funds remains consistent.
There has been a significant decrease in the amount raised by VCTs in 2023 to 2024 compared to the levels of funds raised in 2022 to 2023. As shown in Figure 2, VCTs have been merging over time to achieve economies of scale. However, it is worth noting that there are still new entrants into the VCT industry.
VCTs managing funds include VCTs which raised funds in the tax year and also those VCTs which managed funds raised in previous years. The number of VCTs managing funds has increased in 2023 to 2024 due to new entrants into the VCT market. Since 2010 to 2011, the number of VCTs managing funds has generally been decreasing, dropping to 51 in 2023 to 2024.
4. Investors claiming Income Tax relief and amounts invested
The amount of VCT investment on which Income Tax relief was claimed decreased by 19% in 2023 to 2024, compared to the previous year. The number of investors has decreased by 9% to 24,085 in 2023 to 2024. This information only covers claims made through Self Assessment and will not cover investors making Income Tax relief claims through other systems (for example PAYE) or those not making any claims.
Table 2a and Table 2b present the distribution of investors claiming Income Tax relief under the VCT scheme, and the amounts invested, respectively.
Total figures provided in Tables 2a and 2b on the amount of investment on which Income Tax relief was claimed are not directly comparable with the figures on the amount of investment received by VCTs in a tax year shown in Table 1, as some relief could be claimed outside Self Assessment, or not claimed at all.
4.1 Number of investors claiming VCT relief
Most investors tend to invest under £50,000 into VCT funds. The average amount invested by an individual in the 2023 to 2024 tax year was around £34,000.
Numbers have been rounded to the nearest 5. Totals may not sum due to rounding.
Table 2a: Number of investors claiming VCT relief by size of investment, 2021 to 2022 to 2023 to 2024
| Investment band | 2021-22 | 2022-23 | 2023-24 |
|---|---|---|---|
| Up to £1,000 | 1,030 | 1,635 | 2,155 |
| £1,000 to £2,500 | 1,080 | 1,405 | 1,735 |
| £2,500 to £5,000 | 2,230 | 2,315 | 2,410 |
| £5,000 to £10,000 | 4,470 | 4,495 | 4,170 |
| £10,000 to £15,000 | 2,250 | 2,295 | 2,000 |
| £15,000 to £20,000 | 2,510 | 2,580 | 2,185 |
| £20,000 to £25,000 | 1,740 | 1,765 | 1,370 |
| £25,000 to £50,000 | 4,920 | 4,730 | 3,840 |
| £50,000 to £75,000 | 1,610 | 1,530 | 1,185 |
| £75,000 to £100,000 | 1,470 | 1,400 | 1,095 |
| £100,000 to £150,000 | 910 | 810 | 610 |
| £150,000 to £200,000 | 1,745 | 1,605 | 1,325 |
| Total | 25,970 | 26,575 | 24,085 |
Figure 3: Distribution of the proportion of investors claiming VCT relief by size of investment 2022 to 2023 to 2023 to 2024
In the 2023 to 2024 tax year, there was a significant decrease in the number of VCT investors compared to the previous year. It was thought that the Covid-19 pandemic may have acted to reduce investment towards the end of 2019 to 2020 as uncertainty increased across the economy. However, the increase in investment in 2020 to 2021 suggests Covid-19 impacts may have been lower than expected, or they tempered what would have been a greater increase than is seen in the data in 2020 to 2021. This increase in investment was further shown in 2021 to 2022, with it being a record-breaking year for VCT investment. This was likely driven by a strong rebound from the Covid-19 pandemic and a particularly strong year for the wider venture capital industry. Investment in 2022 to 2023 decreased compared to 2021 to 2022, indicating a slight slowdown in the venture capital market but it still remained a strong year for investment. This decrease in investment continued into 2023 to 2024 in line with the general slow down seen in the venture capital market.
Figure 3 shows the distribution of investors claiming VCT relief grouped by size of investment. Around 82% of VCT investors claimed tax relief under the VCT scheme for an investment of £50,000 or less; the largest number being in the £5,000 to £10,000 group with 17% of the total followed closely by the £25,000 to £50,000 group with 16% of the total. In 2023 to 2024 the proportion of VCT investors in the higher investment size categories (above £25,000) decreased slightly compared to the 2022 to 2023 tax year.
Figure 4: Number of investors claiming VCT relief via Self Assessment, 2004 to 2005 to 2023 to 2024
Figure 4 shows a time series of the number of investors who have claimed VCT relief from tax years 2004 to 2005 to 2023 to 2024. The increase in investors between 2005 to 2006 and 2018 to 2019, as well as the rise in funds raised between this period shown in table 1, reflect the impacts of the pension changes and the Patient Capital Review. The tax year 2021 to 2022 saw an increase in the number of investors. This continued into 2022 to 2023 which saw the highest number of investors since 2004 to 2005. In the 2023 to 2024 tax year, the number of investors decreased by 10% compared to the 2022 to 2023 tax year.
4.2 Amounts invested by VCT investors
Table 2b shows a decrease of 19% in the amount of relief claimed by VCT investors in 2023 to 2024.
Amounts have been rounded to the nearest £5 million. Totals may not sum due to rounding.
Table 2b: Amount of investment on which VCT relief was claimed by size of investment, 2021 to 2022 to 2023 to 2024
| Investment band | 2021-22 | 2022-23 | 2023-24 |
|---|---|---|---|
| Up to £1,000 | 0 | 0 | 0 |
| £1,000 to £2,500 | 0 | 0 | 5 |
| £2,500 to £5,000 | 10 | 10 | 10 |
| £5,000 to £10,000 | 40 | 40 | 35 |
| £10,000 to £15,000 | 30 | 30 | 25 |
| £15,000 to £20,000 | 50 | 50 | 40 |
| £20,000 to £25,000 | 40 | 40 | 30 |
| £25,000 to £50,000 | 190 | 185 | 145 |
| £50,000 to £75,000 | 100 | 95 | 75 |
| £75,000 to £100,000 | 135 | 130 | 100 |
| £100,000 to £150,000 | 115 | 100 | 75 |
| £150,000 to £200,000 | 340 | 315 | 260 |
| Total | 1,045 | 995 | 810 |
Figure 5: Distribution of the proportion of investment for which VCT relief was claimed by size of investment 2022 to 2023 to 2023 to 2024
In Figure 5, we see that the largest category of investment by amount in the 2023 to 2024 tax year was investments between £150,000 to £200,000. More precisely, 32% of the total amount invested is accounted for by only 6% of investors.
Figure 6: Comparison of the amount of investment on which relief was claimed via Self Assessment and total funds raised (£ million), 2004 to 2005 to 2023 to 2024
Figure 6 shows that the amount of relief claimed, and total funds raised by VCTs follow largely consistent trends year on year. From tax year 2019 to 2020, funds raised are presented using the new series. The change in series is marked by the black vertical dashed line. In the 2023 to 2024 tax year, approximately 92% of the total VCT investments were claimed through Self Assessment. The remaining amounts are assumed to be either claimed outside Self Assessment or not claimed at all. The tax year 2021 to 2022 was a record-breaking year for the amount of investment Income Tax relief was claimed on, which is consistent with funds raised by VCTs in 2021 to 2022 reaching record breaking levels. In tax year 2022 to 2023 there was a decrease in the amount of relief claimed which was consistent with the decrease in funds raised by VCTs. This trend has continued into the 2023 to 2024 tax year with the decrease in relief claimed falling further, remaining in line with the decrease seen in funds raised by VCTs in this tax year.
5. Contact
Statistical contacts: M Hindley and M Solonina; venturecapital.statistics@hmrc.gov.uk
Queries relating to investing in VCTs: Venture Capital Reliefs Team; enterprise.centre@hmrc.gov.uk