VCM91010 - CVS: investors and reliefs: introduction

»Ê¹ÚÌåÓýapp CVS is intended to encourage mutually beneficial co-operation between unconnected companies. For this purpose it provides a range of tax reliefs for companies (‘qualifying investing companiesâ€�) which subscribe for shares in unquoted companies carrying on, or preparing to carry on, certain types of trading activities.

»Ê¹ÚÌåÓýapp reliefs available are:

  • investment relief, that is, a reduction in CT liability in respect of the amount subscribed, (see VCM91030 onwards),
  • loss relief (see VCM92000 onwards),
  • deferral of any gain accruing on an investment made under the CVS, where that gain is reinvested under the scheme (see VCM93000 onwards).

»Ê¹ÚÌåÓýapp loss relief and deferral reliefs are available only where investment relief is attributable to the shares disposed of.

»Ê¹ÚÌåÓýapp legislation is at FA00/SCH15.

»Ê¹ÚÌåÓýapp reliefs only apply to shares issued on or before 31 March 2010.