Chapter 29 - VCT

Question 1

How do you calculate the income tax reducer for VCT shares?

Answer 1

30% x the amount subscribed (max £200k)

Question 2

True or false

VCT can be carried back to the previous year

Answer 2

False

Question 3

Dividends on the first what amount are tax free?

Answer 3

£200k

Question 4

How do you calculate the clawback for VCT?

Answer 4

The lower of -

original income tax reducer

or

30% x sale proceeds received (if loss)

Question 5

True or false

A clawback is also applicable if they VCT loses its approved status within 5 years

Answer 5

True

Question 6

List some examples of a qualifying VCT:

Answer 6

a. A quoted company
b. Must invest 80% of shares in a qualifying company
c. At least 70% of qualifying holdings must be in the form of eligible shares
d. Cannot invest more than 15% of funds in any one company
e. Must distribute at least 85% of income