Total investments on which the tax relief was claimed rose by 61% to £1.04bn, according to the data from HMRC.

The average amount invested was £40,000.

However, the tax reliefs claimed were dominated by higher value investors. Those investing between £150,000 and £200,000 accounted for just 6.7% of all VCT investors, but 32.2% of all funds raised.

Nicholas Hyett, investment manager at Wealth Club, called for a rise to the £200,000 a year limit on VCT investments, claiming that raising the cap would lead to a boost in funding for UK small businesses.

He said: “There are signs the £200,000 a year limit on VCT investments, unchanged for nearly 20 years, is capping the funding available to small businesses.

"The largest VCT investors, those investing £150,000 to £200,000 a year, account for just 6.7% of investors, but 32.2% of funds raised. Almost all are hitting the £200,000 a year maximum – and would potentially invest more if the scheme allowed, unlocking significant further funding for small UK businesses.

“With economic growth and support for smaller companies a key priority for both political parties, the £200,000 limit is overdue a review.”

Venture Capital Trusts featured among the top sectors by net demand in the final quarter of the year, according to 2021 data from the Association of Investment Companies.