Rates & Tools

Tax rates

Tax incentive investments

Venture capital trusts (VCTs)
  • Dividends paid by VCTs are exempt from income tax, subject to an annual limit of £200,000 on the amount invested.
  • Income tax relief is available at 30% only to those who subscribe for shares.
  • Shares in VCTs acquired within the annual limit are also exempt from CGT on disposal at any time, but losses on disposal are not allowable.
  • Income tax relief is withdrawn if various conditions are not met; these include a minimum holding period. Since 6 April 2006 the period has been five years.
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