Payment of Special Dividend and Allotment of Share

British Smaller Companies VCT plc (the "Company")

Payment of Special Dividend and Allotment of Shares

The Company announces that on 7 September 2015 it paid a special dividend ("Special Dividend") of 3.5 pence per ordinary share to shareholders on the register of members of the Company as at the record date of 7 August 2015.

The Company further announces that on 7 September 2015 it issued and allotted 803,289 ordinary shares of 10 pence each ("Ordinary Shares") pursuant to its dividend re-investment scheme ("Dividend Re-investment Scheme") at a price of 91.39 pence per share to shareholders of the Company who elected to receive shares instead of the Special Dividend. Of the Special Dividend paid by the Company, 23 per cent was, as a result, re-invested in shares in the Company via the Dividend Re-investment Scheme.

As part of this allotment, Edward Buchan, a non-executive director of the Company, was allotted 751 Ordinary Shares in the Company. This takes his total shareholding to 20,362 Ordinary Shares representing 0.02% of the current issued Ordinary Shares.

As part of this allotment the employees of the investment adviser, YFM Private Equity Limited, have been allotted 6,172 Ordinary Shares bringing their aggregate total shareholding to 331,844 Ordinary Shares representing 0.36% of the current issued Ordinary Shares.

Application is now being made for the Ordinary Shares which were issued and allotted on 7 September 2015 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 21 September 2015.

Following such issue and allotment the Company's issued share capital consists of 91,486,003 Ordinary Shares with voting rights ("Voting Capital") and 3,506,434 shares 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

James Maxwell Nplus 1 Singer Advisory LLP Tel: 020 7496 3000