Payment of Dividend and Allotment of Shares

British Smaller Companies VCT plc (the "Company")

Payment of Interim Dividend and Allotment of Shares

The Company announces that on 18 January 2017 it paid an Interim Dividend ("Interim Dividend") for the year ended 31 March 2017 of 16.5 pence per ordinary share to shareholders on the register of members of the Company as at the record date of 16 December 2016.

The Company further announces that on 18 January 2017 it issued and allotted 5,312,221 ordinary shares of 10 pence each ("Ordinary Shares") pursuant to its dividend re-investment scheme ("DRIS") at a price of 77.71 pence per share to shareholders of the Company who elected to receive shares instead of the Interim Dividend.

The subscription price of 77.71 pence per share was determined in accordance with the terms and conditions of the DRIS on the basis of the last reported Net Asset Value of 98.3 pence per ordinary share as at 30 September 2016 (adjusted for the Interim Dividend of 16.5 pence per share paid today) less 5%. Of the Interim Dividend paid by the Company 26% was re-invested in shares in the Company via the DRIS.

As part of these allotments the staff and members of the investment adviser, YFM Private Equity Limited and its ultimate holding company have been allotted 32,230 Ordinary Shares bringing their aggregate total shareholding to 378,479 Ordinary Shares representing 0.37% of the current issued Ordinary Shares.

Application is now being made for the Ordinary Shares which were issued and allotted on 18 January 2017 to be admitted to the premium segment of the Official List of the UK Listing Authority and to trading on the London Stock Exchange's Main Market for listed securities, and dealings are expected to commence on or around 1 February 2017.

Following such issue and allotment the Company's issued share capital consists of 102,075,661 Ordinary Shares with voting rights ("Voting Capital"). In addition, the Company holds 3,922,999 shares in treasury.

The above statement of Voting Capital may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the FCA's Disclosure and Transparency Rules.

For further information please contact:

David Hall YFM Private Equity Limited Tel: 0113 244 1000

Jonathan Becher Panmure Gordon (UK) Limited Tel: 0207 866 2715