VCM51020 - VCT: investor income tax reliefs: 鈥榝ront-end鈥� income tax relief: who can claim relief
ITA07/S261
Individuals aged 18 or over who subscribe on their own behalf for new ordinary shares in VCTs (鈥榠nvestors鈥�) are entitled to 鈥榝ront-end鈥� income tax relief on subscriptions up to the 鈥榩ermitted maximum鈥� of (拢200,000 per tax year for tax years 2004-05 onwards (拢100,000 for previous tax years)).
皇冠体育app reference to 鈥榯ax year鈥� here means a year beginning on 6 April and ending on 5 April in the following year.
To retain the relief shares must be retained for a minimum holding period. Shares issued on or after 5 April 2006 must be held for at least five years.
皇冠体育app shares must, throughout this minimum holding period, carry no present or future preferential rights to dividends or to the VCT鈥檚 assets on winding up and no present or future rights to be redeemed.