VCM58090 - Venture Capital Trusts: VCT returns: return of amounts subscribed for eligible shares

SI1995/1979 Regulation 21A

VCTs must make a return for each tax year (a year beginning on 6 April and ending on 5 April in the following year) containing particulars of amounts subscribed by investors for ‘eligible shares’ in the year.

The actual amounts subscribed for shares in the VCT in the tax year must be supplied. Do not include amounts subscribed for in:

• other tax years, or
• other VCTs.

Amounts raised through a fund manager or investment house must not be included if a VCT has not issued shares to the investor. Subscribers are not eligible to claim tax relief until the shares have been issued.

S273 definition of ‘eligible shares’

‘Eligible shares’ are new, ordinary shares in the VCT which:

• have no present or future preferential right to dividends or to the company’s assets on its winding up, and
• no present or future right to be redeemed.

Note: the definition of ‘eligible shares’ for this purpose differs from the definition of ‘eligible shares’ as it relates to the VCT’s own investments - see VCM54150

For eligible shares subscribed for in the tax year the return must give:

• the full name of the investor;
• his/her permanent residential address, including postcode;
• his/her date of birth;
• if (s)he has one, their national insurance number;
• the amount paid in respect of the shares subscribed for in the year, and
• the date on which the amount was paid.

The return must be made within 6 months of the end of the tax year (that is by 6 October), or if earlier, within 6 months of the VCT ceasing to be approved.