The Venture Capital Trust (VCT) scheme was introduced to help smaller higher risk companies whose shares are not listed on a recognised stock exchange raise funds. Income tax relief is given to investors at a rate of 30%. An investor can invest up to £200,000 a year in a VCT. Capital gains tax relief on disposal may also be available.
To attract VCT investment the company must meet certain conditions regarding its trading activities, its gross assets, its independence and its subsidiaries.
Companies that meet these requirements could consider tapping into VCT funding.
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