½Û×ÓÊÓƵ

Venture capital trusts income tax relief

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance

Venture capital trusts income tax relief

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
imgtext

A venture capital trust (VCT) is a quoted company that invests in shares and securities issued by qualifying unquoted trading companies with a permanent establishment in the UK.

A subscription in eligible shares of a qualifying VCT is a tax efficient investment for the individual. He can benefit from the following tax reliefs:

  1. •

    income tax relief of up to 30% on the amount invested

  2. •

    income tax exemption for dividends from the VCT

  3. •

    capital gains tax exemption on any gain on the sale of the VCT shares

These reliefs are considered in further detail below. The conditions for a valid investment (including the conditions which must be met by the VCT and the underlying qualifying unquoted companies) are discussed in the Venture capital trusts guidance note.

VCT may be attractive to investors who want to spread their risk by indirectly investing in a number of unquoted companies rather than investing direct in one company, as in the enterprise investment scheme. For more on that scheme, see the Enterprise investment scheme ― introduction

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Powered by

Popular Articles

Transferable tax allowance (also known as the marriage allowance)

Transferable tax allowance (also known as the marriage allowance)What is the transferable tax allowance (marriage allowance)?From 6 April 2015, an individual can elect to transfer 10% of the personal allowance (£1,260) to the spouse or civil partner where neither party is a higher rate or additional

14 Jul 2020 13:52 | Produced by Tolley Read more Read more

Gifts with reservation ― overview

Gifts with reservation ― overviewIntroductionA gift with reservation (GWR) arises when an individual ostensibly makes a gift of his property to another person but retains for himself some or all of the benefit of owning the property. The legislation defines a gift with reservation with reference to

14 Jul 2020 11:48 | Produced by Tolley Read more Read more

Interest and penalties on late paid tax under self assessment

Interest and penalties on late paid tax under self assessmentInterestIf the capital gains tax, the balancing payment or payments on account of tax and / or Class 4 national insurance contributions (NIC) are paid late, HMRC will charge interest on the amount overdue from the original due date. The

14 Jul 2020 12:00 | Produced by Tolley Read more Read more