Budget 2008

Venture Capital Trusts (VCT)

• Income tax relief at 30% of subscription†.
• Relief on subscriptions of up to £200,000 per tax year.
• Shareholders exempt from tax on dividends.
• Disposals exempt from capital gains tax.
• Income tax relief holding period 5 years (3 years for shares issued prior to 6 April 2006).

Qualification rules for Venture Capital Trusts are complex, HM Revenue & Customs’ approval required.

† Limited to tax liability for year of investment.