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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

To view a list of all Venture Capital Trust launches, showing availability and Bestinvest's very competitive discounts, click here.

The value of your investments and the income from them can go down as well as up and you can get back less than you originally invested. Any yields quoted cannot be taken as a reliable indicator of future returns. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

Bestinvest (Brokers) Ltd & Bestinvest (Consultants) Ltd are authorised and regulated by the Financial Services Authority. This site is for UK Investors only

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