VCT Rules
VCT rules
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New VCT Share Subscriptions
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VCT Share Purchases
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Eligible Investors
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UK Residents, aged over 18.
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Investment Limits
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£200,000 per person per tax year
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Tax Reliefs
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- 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.
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- No liability to higher rate tax on dividends.
- No tax on realised gains or CGT on disposal.
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| Eligible Companies |
- At the time of the VCT share issue the Gross Assets of the company must be
less than £7 million and less than £8 million after the issue and the
company's shares must not be listed on a recognised Stock Exchange.
- Companies must have no more than 50 full-time employees and raise no more
than £2m via venture capital schemes in the 12 months ending on the date of
the relevant investment.
- Certain trades are specifically excluded, e.g. farming, property development,
hotels, nursing homes, banking and insurance.
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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
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Minimum Holding Period
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CGT Deferral?
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| 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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