What is the VCT income tax relief?

30% income tax relief on new VCT share subscriptions up to £200,000/year. Must hold VCT shares for at least 5 years to retain the relief. Maximum annual relief: £60,000.

How are VCT dividends taxed?

Dividends from VCTs are completely exempt from income tax, with no restriction on amount. This makes VCTs attractive for high-income investors who would otherwise pay 39.35% additional rate dividend tax.

How do VCTs differ from EIS?

VCT: 30% relief, invested in a fund (more diversification), dividends tax-free, can sell on market (but liquidity limited). EIS: 30% relief, direct company investment (higher risk), CGT deferral available, IHT relief after 2 years. VCTs are generally lower risk.

UK Venture Capital Trust (VCT) Tax Relief Calculator

Calculate VCT income tax relief: 30% on investments up to £200,000/year. VCT dividends and capital gains tax-free. 5-year minimum holding period. Complements EIS/SEIS for high-income investor tax planning.

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$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate VCT income tax relief: 30% on investments up to £200,000/year. VCT dividends and capital gains tax-free. 5-year minimum holding period. Complements EIS/SEIS for high-income investor tax planning. Use the uk vct tax relief result to inform your calculation.

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Frequently Asked Questions

What is the VCT income tax relief?

How are VCT dividends taxed?

How do VCTs differ from EIS?