The trade association confirmed this was the third-highest level ever of annual funds raised in the VCT sector.
Minus enhanced share buybacks, the sector raised £420.2m in the 2013-14 tax year, an increase of 56 per cent on the £269.4m in the previous tax year.
The data also revealed that in the year to 5 April 2014, total assets of all VCTs increased 12 per cent from £2.87bn to an all-time high of £3.21bn.
Ian Sayers, director-general of the AIC, said: “It is clear that demand for the sector continues to grow, as investors recognise the place of VCTs in a balanced portfolio and the role that tax reliefs play in offsetting the inherent risks of investing in smaller companies.”
Adviser view
Jason Hollands, managing director of business development and communications at Bestinvest, said: “We confirmed last Friday that 2013-14 was an eight-year high for VCTs – the AIC data reiterates that but also includes the effect of dividend reinvestment and buybacks, as well as funds raised through new offers. For private investors, renewed interest in VCTs has been down to a combination of the reduced pension allowances spurring affluent investors to search for alternative ways to supplement their retirement plans, a very strong preference for tax-efficient schemes that carry statutory backing over more aggressive forms of tax planning, and the attractive yields that many mature VCTs offer.”
| Tax year | Fund raising (£m) |
| 2009-10 | 344 |
| 2010-11 | 365 |
| 2011-12 | 331 |
| 2012-13 | 403 |
| 2013-14 | 436 |
