Venture Capital Trusts
explained
VCTs offer tax-efficient access to a diversified portfolio of high-growth UK companies.
Why VCTs are a smart investment
Venture Capital Trusts (VCTs) fuel UK innovation by investing in ambitious, early-stage businesses across high-growth sectors like technology, consumer, business services and green energy. These companies seek funding to scale, create jobs and drive progress within their industries.
By investing in small, unlisted businesses, investors can support the next generation of entrepreneurs and can claim up to 20% income tax relief, tax-free capital gains and tax-free dividends.
At Puma, we bring deep VCT expertise and a proven track record, supporting businesses like LOVE CORN, NRG Gyms, Semeris, Aveni, Runa and most recently YASO and HubBox. Our hands-on approach and rigorous investment process have helped raise over £475 million since 2004.
Changes to the VCT rules from April 2026
The Autumn Budget 2025 introduced the most significant changes to VCTs in over a decade. Our new overview gives advisers a clear snapshot of what changed in April 2026 and what it means in practice.
It explains the doubling of company investment limits, the expanded scope for VCTs to support larger businesses and the reduction in upfront income tax relief from 30% to 20%. It also summarises the updated qualifying criteria, new thresholds for Knowledge Intensive Companies and the key risks to consider, helping you quickly understand the planning implications for this tax year and beyond.
What are VCT tax reliefs?
Income tax
relief
Your clients can claim up to 20% income tax relief when they buy newly issued shares in a VCT, up to £200,000 per tax year. To qualify, their shares must be held for at least five years. The relief is non-refundable and cannot exceed the investor's total income tax liability
Tax-free
dividends
Dividends are 100% tax-free and do not need to be reported on your client's tax return. This is beneficial for higher-rate taxpayers, who could otherwise pay up to 39.95% in dividend tax. VCTs offer a smart way to earn tax-free income beyond the £500 dividend allowance in 2025/26
Capital Gains
Tax
The profits made from selling VCT shares are exempt from Capital Gains Tax (CGT), as long as the shares are in an approved VCT and were acquired for genuine investment purposes. This valuable tax-efficient exemption applies to investments of up to £200,000 per tax year
Tax reliefs are not guaranteed, depend on individuals’ personal circumstances and a five-year minimum holding period, and may be subject to change.
Learn more about Puma's Venture Capital Trusts
Since 2005, 15 Puma VCTs have been launched, raising over £475 million. As a series, they have invested into more than 60 qualifying companies and achieved over 40 full exits.
Open for investment
Puma VCT 13
Focusing on UK scale-up companies while offering the full range of VCT tax reliefs, with over £195 million in assets
Open for investment
Puma AIM VCT
Access to commercially strong companies listed on the AIM
Open for investment
Puma Alpha VCT
Backing UK businesses with strong commercial traction, giving investors a route to growth and tax-efficient returns
Case studies
Discover how VCT investing can deliver tax benefits while helping diversify your client's portfolio
Meet Mandi
For clients wishing to extract profits from a company tax-efficiently
Meet Robert
Planning for clients who would like to enhance their retirement fund
Prosper: Our VCT investor newsletter
Explore the latest edition of Prosper, our exclusive magazine for shareholders. Packed with insights, updates and interviews from our portfolio companies, Prosper keeps you and your clients informed on how their investments are helping UK businesses grow.
As a Puma investor, they’ll gain access to behind-the-scenes stories and exclusive offers - a great way to stay connected with the companies they’re backing.
FAQs
For information purposes only and should not be read as advice. Professional tax advice should be sought that can take account of your clients individual circumstances.
We're here to help
With more than 30 Business Development Managers and over 20 Client Relations and Operations specialists, we're here to give you practical guidance and seamless service at every stage of the investment journey.
Use our search tool to find your local manager and get personalised support.
Risk factors
An investment in Puma VCTs carries risk and you should take your own independent advice. You should only invest in a Puma VCT on the basis of the relevant Prospectus, which details the risks of the investment. Below are the key risks.
Tax reliefs: Tax reliefs are not guaranteed, depend on individuals’ personal circumstances and a five-year minimum holding period, and may be subject to change.
Liquidity: It is unlikely there will be a liquid market in the Ordinary Shares of Puma VCTs and it may prove difficult for investors to realise their investment immediately or in full.
Capital at risk: An investment in a Puma VCT involves a high degree of risk. Investors’ capital may be at risk.
General: Past performance of Puma Investments in relation to its VCTs is no indication of future results. The payment of dividends is not guaranteed. Investors have no direct right of action against Puma Investments. The Financial Ombudsman Service/the Financial Services Compensation Scheme are not available.