What is a VCT?
A Venture Capital Trust, or VCT, is a London-listed investment company that backs smaller, high-growth UK businesses.
VCTs were introduced by the UK Government in 1995 to encourage private investment into the UK’s early-stage companies. Today, they continue to play an important role in the innovation ecosystem, helping entrepreneurs access the capital and support they need to scale.
For eligible investors, VCTs offer a way to invest in early-stage innovation while receiving specific tax reliefs. For the companies they support, VCTs provide patient capital: funding designed to help ambitious businesses grow over time.
Put simply, a VCT gives investors access to a diversified portfolio of young UK companies – the kind of businesses building new products, creating skilled jobs and helping shape the future of the economy.
Why invest through a VCT?
Investing directly in early-stage companies can be difficult, time-consuming and high risk. A VCT gives investors access to a managed portfolio of qualifying businesses, selected and supported by an experienced investment team.
In return for backing this part of the market, eligible investors can benefit from VCT tax reliefs. From 6 April 2026, this includes 20% upfront income tax relief on new VCT share subscriptions, provided shares are held for at least five years and all qualifying conditions are met.
VCT investors may also benefit from tax-free dividends and exemption from Capital Gains Tax on the disposal of VCT shares, subject to the relevant rules and personal circumstances.
Who is Molten Ventures VCT?
Molten Ventures VCT gives investors access to a portfolio of high-growth UK technology companies through a listed VCT structure.
As part of Molten Ventures, we focus on backing ambitious founders building the next generation of technology across sectors such as data & infrastructure, digital consumers, energy & industrial, enterprise, hardware & deeptech and health & bio. These are sectors where innovation can move quickly and where the right capital, expertise and networks can help make more possible.
By investing in Molten VCT, investors are not only seeking potential financial returns. They are helping to support the next wave of UK technology companies, the creation of high-skilled jobs and the development of products that can tackle real-world challenges.
The Venture Capital Trust Association
Molten VCT is proud to be a member of the Venture Capital Trust Association, the industry body representing Venture Capital Trusts in the UK.
Through the VCTA, we support work that helps explain the role VCTs play in backing the UK’s most promising growth companies. This includes the VCTA’s Growth Beyond Limits campaign, which highlights how VCT funding supports innovation, entrepreneurship and economic growth across the UK. This work aligns with Molten’s ambition to be the investment platform for the visionaries who invent the future.
Through our VCT, we aim to:
- Fuel innovation by investing in companies building in areas such as AI, fintech, health tech and climate tech.
- Support economic growth by backing businesses with the potential to create skilled jobs and long-term value.
- Help entrepreneurs scale by providing capital, experience and access to networks.
- Deliver value for investors while supporting the growth of ambitious UK companies.
Key VCT features
Diversification
A VCT spreads your investment across a managed portfolio of qualifying early-stage companies, rather than relying on the performance of a single business.
Economic impact
VCTs help channel private capital into smaller UK companies, supporting innovation, job creation and long-term growth.
Tax-efficient growth
Eligible investors can claim 20% upfront income tax relief on new VCT share subscriptions of up to £200,000 per tax year, provided the shares are held for at least five years and all qualifying conditions are met.
VCT shares can also provide tax-free dividends and exemption from Capital Gains Tax on disposal, subject to the relevant rules and your personal circumstances.
Managing the transition
For investments made on or after 6 April 2026, upfront income tax relief is 20%.
Investments made before that date retain the relief rate that applied at the time of subscription. Tax-free dividends and Capital Gains Tax exemptions remain unchanged, subject to qualifying conditions.
Illustration Example
Below is an illustration of the net effective cost and yield breakdown for a standard £20,000 investment under the current 20% tax relief rules:
This example is for illustration only. Dividends are not guaranteed and the value of an investment can fall as well as rise.
Risks of investing in VCT
1. Capital at risk
VCTs invest in early-stage companies, which can make them more volatile and higher risk than some other investment products. The value of your investment can go down as well as up, and you may not get back the full amount you invest. Dividends may be paid from time to time but are not guaranteed.
2. Liquidity
To keep upfront income tax relief, you must hold your VCT shares for at least five years. VCT shares can also be harder to sell than shares in larger listed companies, so they may not be suitable if you need quick access to your money.
3. Tax treatment
Tax reliefs depend on your personal circumstances and may change in the future. We do not provide tax advice. If you are unsure whether a VCT is right for you, please speak to a professional adviser.
This is only intended to be a shortform summary highlighting several principal risks. Please refer to the latest Offer Document for more information.