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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 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.

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.

Manager of the Month

Martin Lau - Manager of the month

Martin Lau

First State Greater China Growth

Career MRI 99.0%

Though Fidelity’s Anthony Bolton is currently making headlines with his new China fund, First State’s Martin Lau already has a successful track record in the region dating back to 1998. Born in Hong Kong, Lau studied engineering at Cambridge University then started his career at Invesco Perpetual before joining First State in 2002. Lau works in the Asia Pacific team under the legendary Angus Tulloch and is tipped by many as a Tulloch’s possible successor. Lau's four star rated First State Greater China Growth fund offers exposure to Hong Kong and Taiwan as well as mainland China, and has achieved strong outperformance whilst offering some downside protection in what is a volatile region for investors.


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