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The recent announcements of the possible mergers of two groups of venture capital trust (VCT) compan...

The recent announcements of the possible mergers of two groups of venture capital trust (VCT) companies looks likely to set a trend for the venture capital trust sector. Such mergers are now possible following tax changes introduced by the Chancellor and in effect divide the market into old and new VCTs. The old VCTs were driven by capital gains tax relief, which is a deferral of the 40% tax rate at that time. But this tax crystallises if the shares are sold or if the VCT is wound up. Some of the early VCTs are quite small, either because they have performed badly or because they have been...