Investors have ploughed more than £600m into Venture Capital Trusts (VCTs) this tax year, but the amount raised is 5 per cent lower than last year.
VCTs are listed investment trusts that invest in other companies. Investors who buy newly issued shares receive a 30 per cent income tax relief if they hold onto the shares for five years.
Shares bought on the secondary market, from an individual who already owns VCT shares, do not receive the tax relief however.
Alex Davies, founder of tax efficient investment specialist Wealth Club, said: "As the tax year draws to a close, VCT funding is less than 5 per cent behind the 2017/18 total at the same point.
"Given the level of uncertainty regarding Brexit and the fact that much of last year’s business was rushed in before the November 2017 Budget following concerns VCT tax relief was about to be reduced, the amount raised is impressive.
"There are still a number of VCT options for anyone still looking to invest before the end of the tax year. Unlike Isas most VCTs close at lunchtime 5th April."
Investors put more money into VCTs in the early months of the 2017/18 tax year amid fears that the rules governing the types of companies for which the tax breaks apply would change.
The rules eventually did change, but the changes were much less severe than had been expected.
Jason Hollands, managing director for business development and communications at wealth manager Tilney, said a feature of the VCT market this year has been the flood of money into a small number of large VCTs.
He noted that of the £620m raised so far, more than £200m was placed with just one VCT, the Octopus Titan product.