The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
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. The individual can benefit from the following tax reliefs:
income tax relief of up to 30% on the amount invested
income tax exemption for dividends from the VCT
capital gains tax exemption on any gain on the sale of the VCT shares
These reliefs are considered in further detail in the Venture capital trusts income tax relief guidance note. The conditions for a valid investment are discussed below.
VCTs are 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 guidance note.
Note that a sunset clause for VCT income tax relief has been introduced. This ensures that income tax relief will no longer be given to subscriptions made on or after 6 April 2025, unless the legislation is renewed by Treasury Order.
As tax relief is only available for subscriptions by an individual in ‘eligible’ shares in a ‘qualifying’ VCT, it is important to be clear on the conditions that must be met.
To obtain the income tax relief on investment in a VCT, the investor must
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
OutlineWhen a property investor grants a lease, potentially this could be done on the basis that the tenant pays a premium for the initial grant of the lease, in addition to also paying rent over the term of the lease. In the absence of specific legislation to the contrary, such premiums would all
This note provides details on how to calculate quarterly instalment payments (QIPs) for large and very large companies.The instalment amounts are based on the estimated corporation tax liability of the company’s current accounting period. Therefore, this means that large and very large companies
Following Spring Budget 2020, statutory sick pay (SSP) rules were changed temporarily to help workers affected by the coronavirus (COVID-19) outbreak. The Chancellor confirmed the Prime Minister’s previous announcement that SSP will be paid from day 1 rather than day 4. Updated guidance on the
The corporate interest restriction (CIR) essentially limits the amount of interest expense a company can deduct from its taxable profits if the interest expense is over £2 million. The actual mechanics of the CIR calculation are highly complex (the legislation is over 150 pages long) and are