Venture Capital Trusts (VCTs)
Invest in VCTs with the UK's #1 investment and savings platform
Apply online in minutes and invest in up-and-coming UK companies
Save on initial charges and receive bonus shares with no hidden fees
Enjoy up to 30% tax relief and tax-free growth potential
Important information: VCTs invest in small, early-stage companies, so they’re considered a high risk investment. Their value can go down as well as up, and your money may be hard to access in the short term - you could get back less than you invest. Any income is variable and not guaranteed. They're long-term investments (5 years+), best suited to experienced investors as part of a broader portfolio. This isn’t personal advice. If you're not sure, ask for financial advice. Tax rules can change, and benefits depend on your personal situation.
Important information: VCTs invest in small, early-stage companies, so they’re considered a high risk investment. Their value can go down as well as up, and your money may be hard to access in the short term - you could get back less than you invest. Any income is variable and not guaranteed. They're long-term investments (5 years+), best suited to experienced investors as part of a broader portfolio. This isn’t personal advice. If you're not sure, ask for financial advice. Tax rules can change, and benefits depend on your personal situation.
What is a VCT?
A Venture Capital Trust (VCT) is a tax-efficient investment backing innovative UK start-up companies with growth potential. Investors can benefit from income tax relief, and grow investments free from UK tax. They're a high risk investment and income isn’t guaranteed.
30% tax relief
Invest up to £200,000 and get up to 30% income tax relief - cutting your tax bill by up to £60,000. VCTs must be held for 5 years to keep tax relief.
Tax-free returns potential
VCTs focus on high-growth companies, offering potential tax-free growth and pay no tax on any dividends.
Diversify your portfolio
Get access to smaller companies not usually on the stock market. Each VCT also holds multiple businesses to spread risk.
Is a VCT right for you?
VCTs are a high-risk investment option. You might consider a VCT if you're:
Comfortable with higher-risk, long-term investments
Someone who has maxed their full ISA and pension allowances
A higher or additional rate taxpayer looking to reduce your tax bill
An experienced investor with a diversified portfolio, using VCTs as part of a broader strategy
Willing to hold the investment for at least 5 years to retain tax relief
Still unsure if investing in VCTs is right for you? Read our essential guide for beginners.
This isn't personal advice. If you're not sure what's right for you, please ask us for financial advice. Tax rules can change, and benefits depend on your circumstances. Investments can rise and fall in value so you could get back less than you invest.
Why invest in VCTs with HL?
Receive bonus shares with no hidden fees
It's free to hold VCTs with HL
Apply in minutes with our simple, fully online process
See and manage your VCTs with ease, next to your other investments and HL accounts
VCT Charges
FREE
Free to hold VCTs and lodge share certificates in an HL Fund and Share account. Pay one £50 dealing charge when you apply for each VCT, and a £50 dealing charge when you sell.
See our Fund and Share Account charges
Get started today
How to invest in VCTs
You’ll need to have an HL Fund and Share Account open first. Before you apply, just make sure you read our Terms and Conditions and Key Features.
If you already have an HL Fund and Share Account make sure you have enough available cash to submit your order. With HL, you can invest in VCTs from a minimum of £10,000 up to a maximum of £200,000.
You can browse all available VCT offers and pick the one that suits you. Once you’ve made your choice, applying online only takes a few minutes. Make sure you read the terms and documents before applying. View VCT offers
Once your application is in, you can sit back and let us take care of the rest.
Your application will show as pending in your account and can’t be cancelled. It can take up to six weeks for your shares to be allocated and visible in your account. We'll send you an update and a confirmation message once your shares have been added. You'll receive your tax certificate in the post shortly after you receive your shares, so you can claim your tax relief.
That's it. You've done your part to support the UK's next potential big thing.
Discover current and new VCTs on offer
We have a number of the latest VCT offers open for investment.
Don’t miss your chance to invest in new VCTs. You can stay ahead of opportunities as they launch by signing up for alerts.
Transfer your VCTs to HL
Save time and effort when you hold your VCTs with HL. Lodge your certificates or transfer from your current provider. Hold VCTs for free in an HL Fund and Share Account, and see them alongside your other investments. Sell them with ease using our buy back service, available on most VCTs.
VCT Essentials
Learn more about VCTs.
VCT FAQs
Here you'll find answers to the most frequently asked questions.
You can only claim tax relief on VCT investments provided certain conditions are met. You must:
Pay UK income tax in the same tax year you invest
Invest in new shares issued by the VCT (not purchased on the stock market)
Stay within the annual VCT investment limit of £200,000 (This means that if you invest £10,000, you could reduce your income tax bill by up to £3,000)
Hold the shares for at least five years – or the tax relief could be withdrawn
On all VCT shares (including those bought on the stock exchange) there is no capital gains tax or income tax on any dividends. To claim the full amount of tax relief, you’ll need to have paid enough tax. Tax benefits depend on your individual circumstances and tax rules can change.
VCT investments are higher risk investments and you could lose your whole investment. It can also be hard to sell VCT shares at a price close to the value of the underlying holdings or in extreme circumstances, at any price.
VCTs must maintain their VCT-qualifying status to keep the tax benefits for their investors. If the VCT loses this status, you could end up losing the tax benefits.
You can invest in VCTs by applying for a new share offer, typically available at set times of the year.
With HL, you can browse current offers online, and complete an application. Once your investment is processed, we’ll hold your VCT shares in your HL Fund and Share Account free of charge. Depending on the offer, you may also qualify for share rebates. To benefit from income tax relief, remember your investment must be in new shares and held for at least five years.
There are strict rules on where VCTs can invest. This is because the companies they invest in must, in most cases, be less than seven years old when the VCT first invests in them. They have to invest at least 80% of their value in qualifying investments in order to maintain their VCT status and their tax benefits for investors.
Investments can be in unlisted private companies or those traded on AIM or the AQSE Growth Market – both stock exchanges for smaller companies. A share listed on AIM or AQSE is regarded as an unlisted company.
They must have a place of business in the UK, typically have fewer than 250 employees, with assets worth less than £15mn before investment and £16mn after. There are some exceptions for knowledge-intensive companies.
They also can’t carry out certain activities, for example, banking, dealing in land or energy generation.
VCTs have a number of charges that are applied by the provider.
When you apply for a VCT they’ll usually have an initial charge, which can often be discounted if applying through a broker. They’ll also have an ongoing charge which is reflected in the share price. There is no charge from HL for holding VCTs, just a £50 dealing charge for buying or selling.
Some VCTs may also have a performance fee that can be charged if the VCT performs well based on set criteria.
A VCT prospectus and Key Information Document will have a full breakdown of charges and how they’re applied.