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UK Cuts Venture Capital Trust Tax Relief to 20%

4/6/2026

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Story summary
  • The UK government reduced income tax relief on venture capital trusts from 30% to 20%, effective April 6.
  • VCTs fund early-stage companies and have raised over £4.3 billion in five years.
  • The November Budget raised the annual investment limit to £10 million, but critics say the tax cut undermines support for high-risk investments.
  • Historical data shows that a previous reduction in relief led to a significant drop in VCT fundraising.