What is a VCT (Venture Capital Trust)?

We've updated this guide on 31st July 2019

Venture Capital Trusts (or VCT) are specialised funds that invest in new, small, innovative companies that need some financial support.

Because of their importance in supporting the economy, VCTs can offer quite a few tax benefits to investors:

1. Tax reliefs when you invest

  • 30% Income Tax Relief: for £10,000 investment, your income tax is reduced by £3,000 that year. If your tax bill for the year is less than the relief you can “Carry Back” some or all of it to the previous tax year
  • This income tax relief also applies to dividends that you might get from VCTs.
  • You need to hold the VCT shares for 5 years. Otherwise, you’ll have to pay the Income Tax relief back to HMRC.

2. Tax reliefs when you exit your investment

  • 100% Capital Gains Tax Exemptions: all your gains from selling your VCT shares are exempt from Capital Gains Tax.
  • This applies for both newly issued shares and shares bought on the secondary market
  • You don’t need to hold the shares for a minimum amount of time (like you have to do for SEIS and EIS) to benefit from this exemption.

You should also remember that, unlike EIS, SEIS, and SITR investments, VCTs are not eligible for Inheritance Tax Relief.

How to invest in VCT funds

While EIS and SEIS can provide slightly better tax reliefs, VCTs can also have a place in your portfolio of tax-efficient investments. They’re all still very high-risk investments, though – you shouldn’t invest only because of the tax reliefs.

You can find VCT funds through platforms like:

The maximum amount you can invest is £200,000.

Can TaxScouts help with VCT reliefs?


Sign up and we’ll assign you one of our certified accountants who can tell you exactly what information we need from you.

After that, we’ll file your Self Assessment tax return on your behalf.

Need help with your tax return?

Get your self assessment prepared for you online by certified accountants for £119

Online self assessment preparation assisted by professional accountants

How TaxScouts works

Simple online tax assessment

1. Simple online tax assessment

Our online tax-bot will go over your tax situation and will make sure you won’t overpay your taxes.

Chat to human advisors

2. Chat to human advisors

You can talk to one of our tax assistants at any time during the process when you have any questions.

We’ll sort your documents online

3. We’ll sort your documents online

We’ll tell you exactly what documents you need and sort them for you online. You just upload them or snap a picture with your phone.

Everything gets prepared for you

4. Everything gets prepared for you

Your certified accountant will go over your details & prepare your tax return for you to review. It will be filed on your behalf once you approve it.

"Absolutely outstanding"
Very quick turnaround, all my questions answered almost immediately and brilliant value.
Aimee J
"Smooth and easy process"
Smooth and easy process. Will use every year! Very helpful staff as well!
Oliver J W
"Absolutely amazing service"
I've been worrying about my tax return for weeks and I'm so pleased I contacted TaxScouts. Outstanding service and problem solved.
Sandra S

Who our service is for

First time tax filers

We have a simple online service that guides you through the entire process. Regardless of your reasons for doing your tax return we'll help you get it done right.

Construction workers

We'll prepare your self assessment and help to maximise your CIS tax refund. We have the lowest fees in the industry and you don't have to pay up front if you're eligible for a refund.

People living overseas

Our service allows people living abroad to prepare their income tax return online. We are able to process all returns regardless of your current country of residence.

Company directors

UK company directors are required to file their self assessment annually. TaxScouts handles this through a simple online process.


Long Lets, Airbnb, Capital Gains. TaxScouts will sort out your self assessment and take away the worry of tracking all the recent tax changes.


TaxScouts ensures the self employed don't overpay on their taxes. We'll help you benefit from all the tax breaks and deductions that can be applied to your return.

And for everyone else who needs to do their self assessment

At TaxScouts we appreciate that tax returns are highly individual. Before you get assigned an accountant we make sure to understand your circumstances and help you build your optimal tax profile.

Let's start by creating your account

What happens next

  • We'll ask you a couple of short questions
  • Then we'll tell you what documents we need
  • Finally one of our qualified accountants will file your tax return