The VCT Mobeus invests in a range of businesses, such as Tushingham, a watersports distribution company

Investors are pumping millions of pounds into venture capital trusts (VCTs) as they pre-empt a clampdown on tax-efficient funds that finance small or early-stage businesses.

A government review into investment in small businesses concluded last week. It is expected to lead to changes to VCTs and the more specialist enterprise investment schemes (EISs) in November’s budget as the chancellor tries to cut the tax allowances offered to wealthy investors.

Several well-established funds that haven’t raised much in the past couple of years have sizeable offerings

Wary of impending restrictions on investment, or curbs to the tax relief offered, VCT fund managers have started raising money earlier than usual this year and financial advisers are urging those considering investing to do so sooner rather than later.

Investors were already showing heightened interest in trusts after curbs to pension tax allowances (see ‘£1m