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HMRC internal manual

Venture Capital Schemes Manual

From
HM Revenue & Customs
Updated
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VCT: investor income tax reliefs: summary of investor reliefs

Three reliefs are available to individuals subscribing for new ordinary VCT shares:

  • ‘front-end’ income tax relief (VCM51020+),
  • exemption from income tax on dividends (VCM51200), and
  • exemption from CGT on disposals (VCM52000+).

CGT deferral relief, previously available, was abolished in respect of shares issued after 5 April 2004 (VCM53000+).

Two of those reliefs are available to individuals who acquire ordinary VCT shares other than by subscription, for example by purchasing them from someone else:

  • exemption from CGT on disposals (VCM52000+), and
  • exemption from Income Tax on dividends (VCM51200).