VCTs raise £365m in 2010/11 tax year
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Venture Capital Trusts took in a total of £365m in the 2010/11 tax season, according to figures from the Association of Investment Companies.
The fundraising is up marginally from £344m taken in the previous tax year, but is still well down on the £779m fundraising peak in 2005/06.
VCTs were given a timely boost in 2011 Budget when George Osborne announced favourable tax treatments for the vehicles. This included increasing the qualifying company limits from 50 to 250 employees and gross assets from £7m to £15m for VCTs. The Government will also raise the annual investment limit for qualifying companies by 400 per cent to £10m for VCTs.
AIC director general Ian Sayers says: “The considerable capital raised by VCTs in the last tax year will help VCTs to continue to support smaller UK companies and play their part in establishing the UK as a home of enterprise.
“The level of investment in VCTs has increased year on year since the financial crisis of 2008, proving that, as the economy recovers, the demand for investment from SMEs grows.”
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