VCM60520 - Venture capital trust (VCT) scheme: General: Withdrawal of approval - effects of the withdrawal of full approval

ITA/S281

If full approval is withdrawn the consequences of this are:

For the company:

• its exemption from CT on chargeable gains is lost.

For the investor in the company:

• “front end” income tax relief may be withdrawn (see VCM64110);
• any deferred gain comes into charge (see VCM68000 onwards);
• subsequent dividends from the company will not be exempt from income tax (see VCM64200); and
• any subsequent gains on disposal of shares in the company will not be exempt from CGT (see VCM66000 onwards).