VCTs

Copyright © 2025 LexisNexis

FORTHCOMING CHANGE relating to the Venture Capital Trust (VCT) ‘sunset clause’ date: On 22 November 2023, the government announced that it will extend the existing sunset clause for the VCT scheme from 6 April 2025 to 6 April 2035. Finance Act 2024 enacts legislation to extend the availability of VCT reliefs to new shares issued before this date, where all the other relevant conditions are met. This measure comes into force on a day to be appointed in regulations.

Like the enterprise investment scheme (EIS), the venture capital trust (VCT) regime is designed to encourage investment in smaller, higher-risk trading companies.

A VCT is a company (not a trust), approved by HMRC, whose shares are admitted to trading in such a way that they meet the listing condition explained in Practice Note: VCTs—VCT conditions for HMRC approval—The listing condition.

Individuals can benefit from a range of tax reliefs, and spread their investment risk, by subscribing for (or buying) shares in a VCT, which, in turn, subscribes for newly issued shares or debt in unquoted companies (companies listed on AIM or PLUS markets (other than

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Existing user? Sign-in TAKE A FREE TRIAL
Powered by Lexis+®
Latest Tax News

Pension scheme’s failure to fulfil commitment to provide information about annual allowance was maladministration, despite no legal obligation (Dr S, CAS-60994-H2H2)

Pensions analysis: The Pensions Ombudsman has upheld a complaint about member communication. Martin Scott of gunnercooke LLP looks at the decision.

Tax weekly highlights—12 June 2025

This week's edition of Tax weekly highlights includes: (1) the publication of the government’s response to the consultation on the tax treatment of carried interest, (2) the impact of the Spending Review on HMRC, (3) an update to the FTT’s guidance on oral evidence from abroad and (4) HMRC’s update on capital allowances areas of uncertainty.

FTT considers ‘eligible body’ status for education-related VAT exemption purposes (Solent Pathway Campus Ltd v HMRC)

Tax analysis: In Solent Pathway Campus Ltd v HMRC, the First-tier Tax Tribunal (FTT) decided that the appellant (SPCL) was an eligible body as a provider of education for VAT purposes. The FTT found that SPCL had the relevant features to be an eligible body, either as a college of a UK university, or as a provider of tuition in English as a foreign language.

The Building Safety Levy (Scotland) Bill—a quick guide

Construction analysis: The Scottish Government introduced the Building Safety Levy (Scotland) Bill into the Scottish Parliament on 5 June 2025. The bill seeks to introduce a new tax: the Scottish Building Safety Levy (SBSL). The levy will be charged on the construction or conversion of residential property developments, and used to fund building safety expenditure by the Scottish Government. In this article, we give an overview of the background to the bill and its key provisions.

View Tax by content type :  
News
Practice notes
Precedents
Q&As

Popular documents

Do shares need to carry voting rights in order to qualify for relief under the seed enterprise investment

Do shares need to carry voting rights in order to qualify for relief under the seed enterprise investment scheme?As set out in Practice Note: SEIS—conditions for relief: issued shares, the funds raised and arrangements in general, the shares issued to the individual investor seeking seed enterprise

If a rentcharge is shown as being informally exonerated on title information, does this apply to the

If a rentcharge is shown as being informally exonerated on title information, does this apply to the current registered owner? Or does the informal exoneration only apply to the parties to the document which informally exonerated the rentcharge?This Q&A considers the situation where, at some

Late payment penalties—inheritance tax

Late payment penalties—inheritance taxWhile interest often accrues on overdue tax, the late payment of certain taxes may also attract a penalty. For information on the interest accruing on overdue tax, see Practice Notes: IHT—payment deadlines on death—Interest on IHT and Interest on late paid

Strike out—making an application to strike out a statement of case

Strike out—making an application to strike out a statement of caseA strike out order can be made either following an application by the parties or on the court's own initiative. This Practice Note deals with the scenario of the order being made following a party's application.Making an application
Do shares need to carry voting rights in order to qualify for relief under the seed enterprise investment

Do shares need to carry voting rights in order to qualify for relief under the seed enterprise investment

Do shares need to carry voting rights in order to qualify for relief under the seed enterprise investment scheme?As set out in Practice Note: SEIS—conditions for relief: issued shares, the funds raised and arrangements in general, the shares issued to the individual investor seeking seed enterprise

If a rentcharge is shown as being informally exonerated on title information, does this apply to the

If a rentcharge is shown as being informally exonerated on title information, does this apply to the

If a rentcharge is shown as being informally exonerated on title information, does this apply to the current registered owner? Or does the informal exoneration only apply to the parties to the document which informally exonerated the rentcharge?This Q&A considers the situation where, at some

Late payment penalties—inheritance tax

Late payment penalties—inheritance tax

Late payment penalties—inheritance taxWhile interest often accrues on overdue tax, the late payment of certain taxes may also attract a penalty. For information on the interest accruing on overdue tax, see Practice Notes: IHT—payment deadlines on death—Interest on IHT and Interest on late paid

Strike out—making an application to strike out a statement of case

Strike out—making an application to strike out a statement of case

Strike out—making an application to strike out a statement of caseA strike out order can be made either following an application by the parties or on the court's own initiative. This Practice Note deals with the scenario of the order being made following a party's application.Making an application