Calls for VCT tax breaks on fund mergers

The Inland Revenue is being lobbied to preserve the tax breaks on VCTs should portfolios merge or sh...

The Inland Revenue is being lobbied to preserve the tax breaks on VCTs should portfolios merge or shareholders rollover from one vehicle to another. Under current rules, the merger or wind-up of a VCT would mean that deferred capital gains would crystallise and other advantages, such as dividends paid tax-free, would come to an end, according to David Cartwright, tax partner on venture capital at PriceWaterhouseCoopers (PWC). There is a growing need for mergers and amicable VCT acquisitions in order to make secondary shares more attractive, said Cartwright. Cartwright, who is heading ...