VCT: VCT approval: withdrawal of approval: effects of withdrawal of full approval
If full approval is withdrawn the consequences of this are:
For the company:
- its exemption from CT on chargeable gains is lost.
For the investor in the company:
- ‘front end’ income tax relief may be withdrawn (see VCM51090);
- any deferred gain comes into charge (see VCM53000 onwards);
- subsequent dividends from the company will not be exempt from income tax (see VCM51200); and
- any subsequent gains on disposal of shares in the company will not be exempt from CGT (see VCM52000 onwards).