Income Tax Act 2007 section 263

Form and amount of relief

Section 263 specifies the form and amount of tax relief available to individuals who claim Venture Capital Trust (VCT) relief.

• An individual who is entitled to VCT relief for a tax year and makes a claim receives a tax reduction for that year.
• The tax reduction is equal to 30% of the amount on which the claim is made.
• The tax reduction is applied at Step 6 of the income tax calculation set out in section 23.
• The actual reduction received may be limited by the individual's income tax liability, as governed by sections 27 and 29.