VCM64050 - VCT scheme: reliefs: 'front-end' Income Tax relief: certificates and claims

SI1995/1979 Regulation 9

Where individuals to whom new ordinary VCT shares have been issued so request, VCTs must, within 30 days of the request issue income tax relief certificates. In practice VCTs may issue certificates as a matter of routine along with share certificates. The certificate should show:

• the name of the investor,
• the investor's permanent address, including postcode,
• the date on which the shares were issued,
• the amount paid and the date it was paid, and
• in the case of partly paid shares, the amounts and due dates for future payments,

and certifying that:

• eligible shares have been issued to the investor,
• to the best of the VCT's knowledge and belief the shares were subscribed for and issued as mentioned in ITA/S261(3) (shares subscribed for and issued for genuine commercial purposes and not as part of a tax avoidance scheme), and
• to the best of the VCT's knowledge and belief the shares were not issued in a case where the investor is not entitled to relief as a consequence of ITA/S264 because the case is one to which paragraph 2 of that Schedule applies (relief not due because of loan made - see VCM64040).

VCTs produce their own certificates. If you receive a certificate that does not give the above information and declaration, or you have doubts about its authenticity, you should refer it to CT& VAT, (see VCM60010 for the address).

You should accept claims without asking to see certificates unless you have reason to doubt the validity of a claim.