Venture Capital Trusts (VCTs) were introduced by the Government in legislation dating back to 1995 offering investors a series of attractive tax benefits in return for taking the additional risks involved in investing in earlier-stage businesses. The legislation has evolved over time. Currently the principal tax reliefs to investors are: income tax relief to the value of 30% of your investment, subject to a limit of £200,000 per tax year; and the ability of VCTs to pay tax free dividends.