Tax benefits

VCTs offer a number of valuable tax benefits which currently include the following:

• Income tax relief of 30% on initial investment, provided that the shares are held for a minimum of 5 years
• No capital gains tax on disposal of VCT shares
• All dividends are tax free
• High ceilings of £200,000 per tax year on investment qualifying for tax relief
• Capital gains on underlying investments can be paid out as tax free dividends