Cut your tax bill with VCTs

“VCTs are high risk and not suitable for most investors”

Investing in long-term growth should not feel like trying to bag a ticket for an Adele concert. But when asset manager Gresham House opened its three latest Mobeus venture capital trusts (VCTs) to applications from investors last month, the phones did not stop ringing. The three funds hit their fundraising target of £35m within 22 hours and then closed their doors.

Not all VCTs launched in recent months have seen quite so much demand, but the sector is certainly running hot. By the end of January, investors had already committed £710m to new VCT launches, ahead of the £685m raised over the whole of the 2020-2021 tax year. “VCTs are on track to raise record sums,” reckons Alex Davies, chief executive of Wealth Club,