A Surge in ‘Tax Optimisers’ Drives Demand in VCTs

As interest in tax-efficient investment strategies grows, ambitious UK investors are increasingly turning to Venture Capital Trusts (VCTs) to optimise their portfolios. 

VCTs have become a popular choice for a rising group of ‘tax optimisers’—those seeking high-growth opportunities amid today’s uncertain economic climate. 

Responding to this demand, Sidekick, the digital wealth manager for the financially ambitious, has introduced its VCT product, designed particularly for high-net-worth individuals within its existing client base.

Sidekick’s curated VCT offering allows its clients to invest in early-stage UK companies and offset up to 30% income tax relief while earning tax-free dividends – an appealing option for those who have already maximised their ISA and pension allowances. 

It is the first of its alternative investment products set to roll out from Sidekick, all offering investment opportunities normally reserved for the ultra-wealthy.

Matt Ford, CEO and co-founder of Sidekick, explained: “With some taxes already rising in the UK, and more hikes likely to come, we anticipate more investors turning towards products such as Venture Capital Trusts. Many of our clients have already leveraged ISAs and pensions and are now looking for strategic ways to significantly reduce their tax liabilities. Our VCT offering responds to this demand, delivering tax efficiency alongside access to high-growth, early-stage investments.

“With VCTs, clients gain access to a hand-picked selection of high-growth companies, offering both a path for tax optimisation and potential growth opportunities – a timely and powerful tool for investors in the current economic climate.”

In the 2023/24 tax year, VCTs raised £882 million, the third-highest figure on record, underscoring their importance in the current market.