Why all VCTs need to be scrapped immediately - HMRC figures prove the point

Not only are the Albion VCT scams riddled with fraud and criminal misconduct by the Directors and Investment Manager, but the whole "industry" is shown by HMRC to be a rip-off on UK taxpayers as proved by HMRC's own numbers

Invested in start-ups (initial and follow-on)        Cost to tax payer

EIS:                                        £1,575m                    <£473m*

SEIS:                                      £242m                      <£121m **

VCTs:                                     >£262m***              <£393m

* 30% initial, <45% on any realised losses = additional <£496m 

** 50% initial, <45% on any realised losses = additional <£54m

**  30% of £873m

VCT cost to taxpayer = 150% of monies actually invested in start-ups regardless of actual losses. That is completely unjustifiable.


Sources:

https://www.gov.uk/government/statistics/venture-capital-trusts-2025/venture-capital-trusts-statistics-2025

https://www.gov.uk/government/statistics/enterprise-investment-scheme-seed-enterprise-investment-scheme-and-social-investment-tax-relief-may-2025/enterprise-investment-scheme-seed-enterprise-investment-scheme-and-social-investment-tax-relief-statistics-2025

https://www.bdo.co.uk/en-gb/insights/tax/corporate-tax/eis-seis-and-vct-tax-efficient-investments-a-guide-for-investors


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