VCM68020 - VCT: deferral relief: which gains qualify?

TCGA92/SCH5C/PARA1 (1)

The relief can be claimed against any chargeable gain arising on the disposal of an asset on or after 6 April 1995. The chargeable gain is the gain after mandatory deductions such as indexation allowance (frozen at April 1998 for individuals, see CG17207) and retirement relief and reliefs which the taxpayer has to claim such as ill-health retirement relief. The investor may claim deferral relief on less than the whole of his chargeable gain. However, the gain to be invested is that before the deduction of taper relief, if any. Any taper relief is deducted when the gain comes back into charge following a chargeable event, see VCM68160. The deferral can also be claimed when a gain previously deferred under the VCT scheme or the EIS is brought back into charge. See VCM38010 onwards for guidance on deferral under the EIS.

VCT deferral relief is abolished for shares issued after 5 April 2004.