The tax reliefs available are;
Income tax Relief: the dividends received on ordinary shares in VCT’s are exempt from income tax. In addition, there is income tax relief of 30% on the cost of subscribed shares issued in the tax year 2006/2007 and onwards. For shares issued prior to this, the tax relief available is 40%. Furthermore, this relief can be offset against any form of income that is liable for income tax at any of the tax rates.
Capital Gains Tax Relief: you may not to be liable Capital Gains Tax on any gain you make when you dispose of your VCT shares. Furthermore, if you invested in shares issued before 6 April 2004, you may be able to postpone any gains arising on disposals around the time your VCT shares were issued. This is referred to as deferral relief and is not available in respect of investments in shares issued after 5 April 2004. |
