Chancellor scales back VCT tax relief

The Autumn Statement revealed that any investments linked to a VCT share buyback or made within six months of selling shares in the same VCT will not qualify for tax relief. A share buyback is where a VCT launches an offer to existing shareholders to cash in their shares, having originally achieved a 30% tax credit on their investment and held the shares for at least five years, on the condition they then reinvest into a new offer. The clamp down comes after HM Revenue & Customs had already warned it was looking at VCT enhanced buybacks in the April Budget. Oliver Bedford, manager ...