Venture capital trusts (VCTs) aid economic growth through their investments in small businesses, according to Albion Ventures.
The VCT specialist, formerly Close Ventures, says since its first fund was launched in 1996 its investments have led to the creation of 2,000 full-time jobs.
This will generate about £16.5m in income tax and national insurance taken on an average salary basis this year.
Government coffers will also benefit from corporation tax on the business activities of these growing companies, Albion points out.
The Government provides an incentive for retail investors to invest in new shares in VCTs by offering income tax relief on their investment.
This has varied over time but currently investors receive an initial 30% back on investments up to £200,000 in the tax year of investment.
Albion's seven VCTs have raised £225.9m, of which £65.7m has been claimed by shareholders in tax relief.
But the amount the VCTs raise for the public purse more than sets off these tax breaks, according to Albion.
"Not only have we created over 2000 new jobs but our VCTs clearly benefit UK plc's balance sheet and also stimulate enterprise, entrepreneurship and ground breaking advances in many sectors," says Patrick Reeve, managing partner at Albion Ventures.
Earlier this week, official figures showed that government borrowing had soared to £13bn in June, almost double the level it was last year, and tax receipts saw their worst fall since the 1920s.
