What are the tax incentives?

Venture Capital Trusts offer a number of tax benefits for qualifying investors:

• 30% income tax relief
  Investors receive 30% upfront income tax relief on investments up to £200,000 subject to the following:-
  
  
  • You must hold the shares for five years to retain the relief;
  • You can only reduce income tax liability to zero in the relevant tax year;
  • Income tax relief can be used against all forms of income tax paid, not just earned income;
  • Relief is at 30% regardless of your marginal rate.
    
• Dividend relief
  All dividends are tax-free.
  
  
• Capital Gains Tax (CGT) disposal relief
  Capital gains on sale of shares (while structured as a VCT) are tax-free.

THE SMALL PRINT

The value of investments and any income they produce can fall as well as rise and past performance is not an indicator of future performance. Investors may therefore get back less than invested and should be aware of this risk before investing.

To find out whether a VCT is suitable or for details of the latest offers please contact us.