(Venture Capital Trust)

VCT is a highly fixed number of shares collective investment scheme designed to provide private equity capital for small expanding companies and capital gains for investors. It also have companies listed on the London Stock Exchange.

The tax reliefs available to investors are:

VCT Income Tax Relief

• Reduction in income tax liability amounting to 30% of the total investment up to a maximum of £200,000 in any tax year
• Applies to new ordinary shares only
• No carry-back facility
• Relief cannot exceed an amount which reduces the investors income tax liability to nil

Dividend Relief

• VCT dividends are exempt from income tax
• Applies to both new and second-hand shares
• VCT distributions can be paid from capital

CGT Disposal Relief

• Any gain on the disposal of VCT shares after five years and on which VCT income tax relief has been given and not withdrawn, will be exempt from CGT

If you require further information please click here.