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HMRC internal manual

Venture Capital Schemes Manual

VCT: investor income tax reliefs: ‘front-end’ income tax relief: certificates and claims

SI1995/1979 Regulation 9

Where individuals to whom new ordinary VCT shares have been issued so request, VCTs must, within 30 days of the request issue income tax relief certificates. In practice VCTs may issue certificates as a matter of routine along with share certificates.

The certificate should show:

  • the name of the investor,
  • the investor’s permanent address, including postcode,
  • the date on which the shares were issued,
  • the amount paid and the date it was paid, and
  • in the case of partly paid shares, the amounts and due dates for future payments.

The certificate should certify that:

  • eligible shares have been issued to the investor,
  • to the best of the VCT’s knowledge and belief the shares were subscribed for and issued in accordance with ITA07/S261(3) (shares subscribed for and issued for genuine commercial purposes and not as part of a tax avoidance scheme), and
  • to the best of the VCT’s knowledge and belief the shares were not issued in a case where the investor is not entitled to relief as a consequence of ITA07/S264 (no entitlement to relief if there is a linked loan - see VCM51040).

VCTs should produce their own certificates. If an HMRC officer receives a certificate that does not give the above information and declaration, or has doubts about its authenticity, they should refer it to Small Companies Enterprise Centre (seeVCM2070 for the address).

HMRC officers should accept claims without asking to see certificates unless there is reason to doubt the validity of a claim.