VCT vs EIS in deferral stakes after Budget changes rules

The firm says in a follow-up note to Wednesday’s action that CGT deferral relief will not be available for VCT shares issued on or after 6 April. "Capital gains arising in the 2004/5 tax year can be deferred if a subscription for VCT shares takes place in the 12 months prior to the gain arising and within the 2003/4 tax year. Therefore, if you are likely to realise a capital gain in the next 12 months, you only have until 5th April 2004 to use a VCT for deferring this future liability." EIS investors, no the other hand, will be able to continue deferring unlimited amounts of CGT rema...