VCT Rules
VCT rules
|
New VCT Share
Subscriptions |
VCT Share Purchases |
| Eligible Investors |
UK Residents, aged over 18. |
| Investment Limits |
£200,000 per person per tax year |
| Tax Reliefs |
- 30% Income Tax rebate on cost of investment, provided the VCT
shares are held for at least 5 years and that the investor has paid
this amount of tax.
- No liability to higher rate tax on dividends.
- No tax on realised gains or CGT on disposal.
|
- No liability to higher rate tax on dividends.
- No tax on realised gains or CGT on disposal.
|
| Eligible Companies |
- At the time of the VCT share issue the Gross Assets of the
company must be less than £7 million. After 6th April 2012 this
will increase to gross assets £15m prior to investment.
- Companies must have no more than 50 full-time employees,
increasing to fewer than 250 after 6th April 2012. Companies can
raise no more than £2m via venture capital schemes in any 12 month
period (increasing to £10m after 6th April 2012). Certain trades
are specifically excluded, e.g. farming, property development,
hotels, nursing homes, banking, insurance and businesses earning
from Feed-In-Tariffs (FITs) such as the Solar FITs.
|
The table above is a brief summary of the rules as
we understand them.
No liability is accepted for any losses arising from errors or
omissions.
History of VCT Tax Reliefs
| Tax
Year(s) |
Contribution Tax Relief |
Minimum Holding Period |
CGT Deferral? |
| 1995/96 - 2000/01 |
20% |
5 years |
Yes |
| 2001/02 - 2003/04 |
20% |
3 years |
Yes |
| 2004/05 - 2005/06 |
40% |
3 years |
No |
| 2006/07onwards |
30% |
5 years |
No |
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