Payment of Dividend and Issue of Equity

British Smaller Companies VCT plc (the "Company")

Payment of Dividend and Allotment of Shares

The Company announces that on 8 December 2023 it paid a second interim dividend for the year ending 31 March 2024 of 2.0 pence per ordinary share to shareholders on the register of members of the Company as at the record date of 10 November 2023 (the "Dividend").

The Company further announces that on 8 December 2023 it issued and allotted 1,220,008 ordinary shares of 10 pence each pursuant to its dividend re-investment scheme ("DRIS") at a price of 80.4 pence per ordinary share to shareholders of the Company who elected to receive ordinary shares instead of the Dividend. The subscription price of 80.4 pence per ordinary share was determined in accordance with the terms and conditions of the DRIS on the basis of the net asset value of 82.4 pence per ordinary share as at 30 September 2023 (adjusted for the Dividend of 2.0 pence per ordinary share paid today). As a result, 20.4 per cent of the Dividend paid by the Company was re-invested in ordinary shares in the Company via the DRIS.

In this allotment the employees and members of the Manager, YFM Private Equity Limited, have been allotted 4,938 ordinary shares of 10 pence each in the Company, bringing their aggregate total holding to 686,552 ordinary shares.

Application is now being made for the ordinary shares which were issued and allotted as set out above to be admitted to the premium segment of the Official List of the Financial Conduct Authority and to trading on the London Stock Exchange's Main Market for listed securities, and dealings are expected to commence on or around 20 December 2023.

Following such issue and allotment the Company's issued share capital consists of 242,211,492 ordinary shares of 10 pence each with voting rights ("Voting Capital") and 23,525,696 ordinary shares of 10 pence each held 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

Alex Collins Panmure Gordon (UK) Limited Tel: 0207 886 2767