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HMRC internal manual

Inheritance Tax Manual

Stocks and shares: BES/EIS/VCT/EZ/Property Enterprise Trust: identifying investments in the schemes

It sometimes happens that although the interest and the name of the fund or scheme are correctly stated in the HMRC Account, the taxpayer fails to mention that the fund or scheme was established under the BES/BSS/ EIS/VCT/EZ/Property Enterprise Trust (IHTM18301) provisions and/or Service do not flag up the investment. The result may be that the fund or scheme appears to be an ordinary shareholding or Investment Trust. The following pointers may help you to identify investments in these schemes

  • the description of the fund or scheme suggests that it is one of a succession of funds, such as “Alpha” Fund or “Second” Basildon Fund or “Fifth” Fund Lazard Development Capital;
  • the words “Venture” “Enterprise Investment” or “Business Start-Up” or “Business Expansion” appear in the fund or scheme’s name:
  • there are a number of smallish holdings in unlisted companies declared in the estate (between 5 and 20 is normal).

If any one or a combination of these pointers exists,

  • enquire with the taxpayer whether the fund or scheme was established under the provisions of the appropriate BES/BSS/EIS/VCT/EZ/ Property Enterprise Trust legislation, and
  • obtain any further necessary information (IHTM18303).