Venture capital trusts (VCTs) are more popular than ever. Figures published recently by HMRC reveal that investors put £1.122bn into tax-efficient VCTs during the 2021-2022 tax year – marking a 68% increase on the previous year. Part of the appeal is the theory that from “small acorns grow mighty oaks”. VCTs are professionally managed funds that invest in portfolios of small, early-stage companies; these have the potential to deliver outsized returns if the manager picks the right ones.
