News

Extra shares tax relief

09 February 2012

Extra shares qualify for 30% income tax relief through Downing & Northern

• Good news for investors: this year, investors receiving any extra shares on their subscription (e.g. through early bird offers) will also qualify for 30% income tax relief on these extra shares.
• Please take this into account: when you subscribe, especially if, in this tax year, you plan on using your full VCT allowance of £200,000 or if you are likely to reduce your tax liability to nil.

Example: an investor who invests £100,000 in Downing Income VCT 3 during the 1.5% early bird period would receive an extra 1,500 shares at no extra cost. These 1,500 shares qualify for 30% income tax relief, giving the investor an extra £450 off their income tax bill. This investor will have effectively subscribed £101,500 and, therefore, should not subscribe more than £98,500 to other VCTs in the 2011/12 tax year.