three years of the share issue at least 80% of the VCT's assets must be invested in "qualifying" holdings. These are defined as holdings of shares or securities, including loans of at least five years duration, in unquoted companies and those whose shares are traded on the alternative investment market (AIM). These companies must have a permanent establishment in the UK and carry out a "qualifying trade". The balance of up to 20% can be invested into areas such as government securities, gilts or blue-chip shares. VCTs may invest up to £5million in a qualifying company. Each individual investment cannot make up more than 15% of VCT assets. The gross assets of the company into which the VCT invests must not exceed £15million, and the company must have no more than 250 employees. If an investment is held in a company that becomes quoted on the London Stock Exchange then it can continue to be treated as a qualifying VCT investment for up to five years. Types VCTs can usually be classified according to the following criteria: Generalist, Specialist or AIM: A generalist VCT invests primarily in unquoted companies from a diversity of industries; a specialist VCT focuses on a particular industry or sector such as healthcare or technology. An AIM VCT may also be generalist in nature but invests predominantly in AIM-listed companies. Evergreen or Limited Life: VCTs that are set up to invest indefinitely may be called evergreen. A limited-life VCT is set to be wound up after the minimum five-year holding period in order for the assets to be distributed among shareholders. Amount of money raised by VCTs For the first nine years of their existence, Venture Capital Trusts raised an average of £181 million per tax year in aggregate. During this time, investors could claim 20% income tax relief on VCT subscriptions upfront, and also defer capital gains, thus avoiding capital gains tax. In 2004 the amount of income tax relief was temporarily doubled to 40% by chancellor Gordon Brown, along with a doubling of the annual allowance to £200,000 per individual per tax year, while capital gains tax deferral was withdrawn. These changes helped VCT fundraising increase sharply to £505 million in 2004/05 and £779 million in 2005/06, the latter setting a record that would last 15 years. After the level of income tax relief was reduced to 30% in April 2006, at which point