VCM54180 | VCT: VCT approval: investment limits condition

ITA07/S274(2) and S280B

A VCT is prohibited, in any accounting period, from making any investment in a company which exceeds the permitted investment limits. The permitted limits in question are is the same as the limits which apply for the purposes of ITA07/S292A and ITA07/S292AA in determining whether a holding is ‘qualifying’ or not ( VCM55130 refers).

There are annual and lifetime investment limits, both of which must be met.

Annual investment limits for investments on or after 6 April 2026

Companies that are knowledge intensive can receive investment of up to :

• £10 million of relevant investment in total in any 12 month period for specified companies

• £20 million of relevant investment in total in any 12 month period for all other companies.

Companies that are not knowledge intensive can receive investment of up to:

• £5 million of relevant investment in total in any 12 month period for specified companies.

• £10 million of relevant investment in total in any 12 month period for all other companies.

Maximum investment over the company’s lifetime for investments on or after 6 April 2026

Companies that are knowledge intensive can receive investment of up to:

• £20 million of relevant investment in its lifetime for specified companies

• £40 million of relevant investment in its lifetime for all other companies.

Companies that are not knowledge intensive can receive investment of up to:

• £12 million of relevant investment in its lifetime for specified companies.

• £24 million of relevant investment in its lifetime for all other companies.

Annual and maximum limits for investment before 6 April 2025

• The annual investment limit: £5 million over a rolling 12 month period (£10 million for knowledge-intensive companies receiving investments on or after 6 April 2018)

• The lifetime funding limit: £12 million (£20 million for knowledge-intensive companies)

Go to VCM55130 for further details on the limits.