British Smaller Companies VCT plc (the "Company")

Payment of Interim Dividend and Allotment of Shares

The Company announces that on 5 January 2022 it paid an interim dividend for the year ending 31 March 2022 of 2.0 pence per ordinary share to shareholders on the register of members of the Company as at the record date of 26 November 2021 (the "Third Interim Dividend").

The Company further announces that on 5 January 2022 it issued and allotted 940,963 ordinary shares of 10 pence each pursuant to its dividend re-investment scheme ("DRIS") at a price of 83.9 pence per ordinary share to shareholders of the Company who elected to receive ordinary shares instead of the Third Interim Dividend. The subscription price of 83.9 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 90.9 pence per ordinary share as at 30 September 2021 (adjusted for the second interim dividend of 5.0 pence per ordinary share paid on 16 November 2021 and the Third Interim Dividend of 2.0 pence per ordinary share paid today).  As a result, 27 per cent of the Third Interim Dividend paid by the Company was re-invested in ordinary shares in the Company via the DRIS.

Under this allotment Rupert Cook, non-executive Director of the Company, has been allotted 1,002 ordinary shares of 10 pence each in the Company, bringing his aggregate total holding to 43,048 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 12 January 2022.

Following such issue and allotment the Company's issued share capital consists of 147,594,652 ordinary shares of 10 pence each with voting rights ("Voting Capital") and 17,986,301 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