VCT Tax Relief Cut to 20%: What It Means for Investors and Smaller Companies

From 6 April 2026, the upfront Income Tax relief on new Venture Capital Trust (VCT) shares fell from 30% to 20%. VCT dividends are still generally tax-free and gains remain exempt from Capital Gains Tax. At the same time, the amount most qualifying companies can raise from VCTs each year has doubled from £5 million to £10 million.