Fundraising for venture capital trusts (VCTs) totalled £311 million for the last tax year, more than double the amount raised in 2008/9.

Fundraising for venture capital trusts (VCTs) totalled £311 million for the last tax year, more than double the amount raised in 2008/9.

Limited life VCTs secured the bulk of the funding, some £186 million, while generalist VCTs brought in £86 million, according to Tax Efficient Review.

The firm to raise the most funds was Octopus Investments, which attracted £50 million for its limited life VCT.

Chris Hulatt, a director at Octopus, says, ‘As tax benefits on pensions are reduced this year and high earners face rising tax burdens, VCT investments are an increasingly attractive solution for tax-efficient saving.’

The government offers investors in VCTs income tax relief of 30 per cent on their money, while any dividends paid are also tax-free.