IW 30: VCTs three decades on and the need for reform to secure their longevity

The evolution of venture capital trusts

The year was 1995 when the first issue of Investment Week magazine (remember those?) was printed and distributed to the financial services sector and to celebrate our 30th anniversary, not only do we have a plethora of birthday events, the editorial team is also looking back at the past three decades and what lies ahead for the future of the sector.

But IW is not the only one turning 30 this year. Investment Week celebrates 30th Anniversary in 2025 The year 1995 was also saw the creation of venture capital trusts (VCTs). Unveiled in then-chancellor Kenneth Clarke's November 1994 Budget, following a year of industry consultation, he said the inception of VCTs aimed to make "investment in risk capital even more attractive". At their inception, VCTs allowed investments up to £100,000 a year in new shares to receive 20% upfront income tax relief, as well as capital gains reinvestment tax relief, and tax-free dividends and capit...