VCM64010 - VCT scheme: reliefs: summary of investor reliefs

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

• ‘front-end' income tax relief ( VCM64000 onwards),
• exemption from CGT on disposals ( VCM66000 onwards), and
• exemption from income tax on dividends ( VCM64200).

CGT deferral relief, previously available, was abolished in respect of shares issued after 5 April 2004 ( VCM68000 onwards).

Two 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 ( VCM66000 onwards), and
• exemption from income tax on dividends ( VCM64200).