Nine venture capital trusts (VCTs) made annual cash payments to private investors that nearly doubled the equivalent dividends from investing in the FTSE All-Share index, a new report from the British Venture Capital Association (BVCA) said.

The BVCA has looked at the first nine VCTs launched in 1995 and 1996, and found that they have made annual cash payouts of 16.6% over the five-year period to higher rate shareholders, who fully benefit from VCT tax relief.