Policy paper

Venture Capital Trusts return of capital

This Tax Information and Impact Note explains how the government will limit the use of converted Venture Capital Trusts share premium accounts to return capital to investors within the next 3 years.

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This measure is intended to ensure that the tax reliefs offered to investors making Venture Capital Trusts (VCTs) investments are well-targeted, so that VCTs can continue to operate effectively and provide support to high-growth potential small and medium-sized companies. The change is intended to ensure that investments through the tax-advantaged venture capital schemes continue to support growth, but that the tax reliefs operate in a fair and sustainable way.

Published 19 March 2014