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Venture Capital Trust

Who it is for

To be eligible for VCT funding, companies are required to:

• have a permanent establishment in the UK
• engage in a ‘qualifying trade’ (excluding activities such as land dealing, financial activities, forestry, farming, running hotels, and energy generation)
• have gross assets of £15 million or less before the investment or £16 million immediately after

Support you can get

An approved VCT has a number of tax advantages:

• the VCT is itself exempt from Corporation Tax on chargeable gains (and losses for chargeable gains purposes are not allowable losses)
• individual investors can claim ‘front-end’ income tax relief on subscriptions of up to £200,000
• individual investors are exempt from income tax on dividends in respect of ordinary shares acquired within the ‘permitted maximum’ of £200,000
• individual investors are exempt from CGT on the disposal of ordinary shares acquired within the ‘permitted maximum’ of £200,000

Investors obtain ‘front-end’ income tax relief by submitting claims to their own HMRC office, either as part of their SA tax return, or separately.

How to apply

You need to contact HMRC's specialist Venture Capital Relief Team -see contact details below.

Support organisers

• HM Revenue & Customs

Contact

HMRC's Venture Capital Relief Team

Email

enterprise.centre@hmrc.gov.uk

Next Steps

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