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HMRC internal manual

Venture Capital Schemes Manual

HM Revenue & Customs
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VCT: investor CG deferral relief: which gains qualify?


The relief could be claimed against any chargeable gain arising on the disposal of an asset on or after 6 April 1995. The chargeable gain is the gain after mandatory deductions such as indexation allowance (frozen at April 1998 for individuals, see CG17207) and retirement relief and reliefs which the taxpayer has to claim such as ill-health retirement relief. The investor could claim deferral relief on less than the whole of his chargeable gain. However, the gain to be invested is that before the deduction of taper relief, if any. Any taper relief is deducted when the gain comes back into charge following a chargeable event, see VCM53090.

The deferral could also be claimed when a gain previously deferred under the VCT scheme or the EIS was brought back into charge. See VCM23000 onwards for guidance on deferral under the EIS.