Income Tax refund at 30%
Income tax relief is only available on subscription for new shares and the maximum subscription is GBP 200,000 per tax year, hence the maximum Income Tax relief is GBP 60,000.
Tax free dividends
Dividends from ordinary VCT shares are tax free. This applies whether the shares were subscribed for or purchased in the market
No CGT providing the VCT shares are held for five years. It does not matter whether you subscribe for newly issued shares or whether you acquire existing shares. However, no relief is given for losses realised on sale.
At least 80% of a VCT’s investments must be into qualifying holdings within 3 years.
At least 30% of funds raised must be invested in qualifying holdings within 12 months, with the remainder to be invested in qualifying holdings within 3 years.