Income Tax Act 2007 Schedule 2 paragraph 60

Form and amount of relief

Paragraph 60 of Schedule 2 modifies the rate of income tax relief available on investments in venture capital trust (VCT) shares depending on when the shares were issued.

• For shares issued on or after 6 April 2006, the standard VCT relief rate of 30% applies under section 263(2).
• For shares issued before 6 April 2006 but on or after 6 April 2004, relief is given at the higher rate of income tax for the relevant tax year, rather than 30%.
• For shares issued before 6 April 2004, relief is given at the savings rate of income tax rather than the higher rate.
• These transitional rules ensure that the relief rate applicable at the time the shares were originally issued is preserved.