Venture capital trust tax relief cut remains in place following Budget

Relief rate maintained

The reduction in upfront income tax relief for venture capital trusts from 30% to 20%, introduced at the previous Budget, will remain in place after Chancellor John Healey omitted changes in his maiden Budget on 28 October. Industry bodies including the Association of Investment Companies and the Venture Capital Trust Association had lobbied for the rate to be restored to support scale-up companies. Treasury figures indicate the reduction saves £125m in 2027/28 and about £100m annually thereafter.