Venture Capital Trust Income Tax Relief
2026-06-23
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
A recent industry survey showed that many VCT founders are scaling back growth plans, cutting headcounts and even leaving the country. This prompted Alan Mak to question the potential impact of reducing up-front venture capital trust income tax relief on fundraising.
What assessment has been made of the potential impact of reducing up-front venture capital trust income tax relief on VCT fundraising? A recent industry survey revealed that 62% of VCT founders are scaling back growth plans, 45% are cutting headcounts, and 25% are leaving the country. Will the Government reverse the Chancellor's plans to cut this relief?
We have real confidence in the British venture capital sector and doubled the investment limits and gross assets threshold for enterprise investment and venture capital trust schemes. Those changes are supporting growth and development.
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Assessment & feedback
The government will not reverse its plans to cut this relief despite industry concerns
Absolutely Not
Response accuracy
Q2
Partial Answer
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Context
The same industry survey showed significant negative impacts on the UK's tech sector, prompting questions about potential long-term damage.
A recent industry survey revealed that 62% of VCT founders are scaling back growth plans, 45% are cutting headcounts, and 25% are leaving the country. Will the Government reverse the Chancellor's plans to cut this relief, or will her legacy for Britain's tech sector be lower growth, fewer jobs and lasting damage?
Absolutely not; we have real confidence in the British venture capital sector. In the 2025 Budget, we doubled the investment limits and gross assets threshold for the enterprise investment and venture capital trust schemes.
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Assessment & feedback
The government will not reverse its plans to cut this relief despite industry concerns
Absolutely Not
Response accuracy
Q3
Partial Answer
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Context
Mark Garnier congratulated the Economic Secretary on her recent promotion, and questioned whether the new role will ensure better growth for the UK economy.
May I start by congratulating the former Economic Secretary, the right hon. and learned Member for Northampton North (Lucy Rigby), on her promotion to Chief Secretary? In the eight months that I shadowed her in her previous role, she made a strong impact and gained significant, well-deserved respect from those in the financial services industry. May I also welcome my fourth Economic Secretary, and wish her the very best of luck in the role? As the Leader of the Opposition said in a speech last week, tax and regulation is getting in the way of financial services lending and investing in the UK economy. Does the new Economic Secretary think that the next Chancellor will do a better job of ensuring growth for this country?
This Chancellor has secured six interest rate cuts. We are creating conditions for investment, with skills and innovation investments up; regional infrastructure investments up; and whole-economy investment up 4.9% since the election.
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Assessment & feedback
The economic growth measures do not specifically address issues in financial services
This Chancellor Has Secured Six Interest Rate Cuts
Response accuracy