Retail investors are increasingly investing in small British companies through venture capital trusts (VCTs) due to recent tax changes following Labour’s election win. Inflows into VCTs reached £250.1 million from the start of the tax year to mid-November, a 26.6% increase year-on-year. The recent Budget raised taxes significantly, leading investors to seek tax-efficient alternatives like VCTs, which offer up to 30% income tax relief. Hargreaves Lansdown has launched a new online VCT service in response. While VCTs can provide higher returns, they carry risks and low liquidity, and experts recommend limiting investments to 10% of one’s estate.