VCM51010 | VCT: investor income tax reliefs: summary of investor reliefs

Three reliefs are available to individuals subscribing for new ordinary VCT shares:

• ‘front-end’ income tax relief (VCM51020+),

• exemption from income tax on dividends (VCM51200), and

• exemption from CGT on disposals (VCM52000+).

CGT deferral relief, previously available, was abolished in respect of shares issued after 5 April 2004 (VCM53000+).

Two of those reliefs are available to individuals who acquire ordinary VCT shares other than by subscription, for example by purchasing them from someone else:

• exemption from CGT on disposals (VCM52000+), and

• exemption from Income Tax on dividends (VCM51200).