VCT fundraising collapses to £269m from £750m high

VCT funds raised in the last tax year collapsed to £269m from a high of £750m over the previous 12 m...

VCT funds raised in the last tax year collapsed to £269m from a high of £750m over the previous 12 months. Industry observers had predicted a fall in demand for VCTs after last year’s Budget reduced the tax relief from 40% to 30%, as well as restricted the holdings in which trusts are allowed to invest. However, despite predicting a drop in demand from last year’s high to around somewhere between £100m and £300m this year, VCT providers still looked for an overall target £450m through issues and top-ups. According to data from Allenbridge, £268.09m was raised in new assets, and with £...