Budget 2013: Osborne cracks down on VCTs offering enhanced buybacks

The government has announced plans to crack down on VCT providers which offer enhanced share buybacks, arguing this is against the spirit of the rules.

Enhanced buybacks, which enable investors to double their 30% income tax relief, have been growing in popularity over the past couple of years. Investors who have held on to their VCT shares for the five-year qualifying period to receive the 30% income tax relief can opt to use an enhanced buyback offer to secure a fresh tax break for an additional five years. In today's Budget, Chancellor George Osborne (pictured) revealed government will monitor VCT providers using this loophole to offer extra tax breaks. "The recent expansions to Venture Capital Trusts (VCTs) and the Enterprise ...