You can get Capital Gains Tax relief on 50% of the investment, up to £100,000. The maximum amount you can get is £50,000. You do not have to sell an asset before you invest. However if you do, the asset must be sold in the same tax year that you claim Income Tax relief on the investment.

What can VCTs invest in?

VCTs typically invest in unquoted shares including:

  • New shares of privately owned companies.
  • New shares of companies that are traded on the Alternative Investment Market (AIM).

    Do you get tax relief on loans?

    Tax relief is available for interest on loans where the borrowed money is used for certain specific purposes. You can also claim relief for alternative finance payments paid on a qualifying alternative finance arrangement on the same basis as someone claiming relief for interest paid on a loan.

    When to claim interest relief on a loan?

    If your loan to the company is partly repaid and becomes less than the amount you originally borrowed, a restriction will be applied to the interest you can claim. The interest relief is claimed by the individual who borrows the money, not the partnership to which they belong.

    Can You claim tax relief on a loan to a limited company?

    So, the husband can claim relief for the interest he is paying on the £50k loan invested in the company because he is an associate (husband) of the beneficial owner (wife) of the company. If you are not happy about treating him as an associate, issue a share in the company to him.

    Do you get tax relief on a film partnership loan?

    You have not recovered any capital from the partnership, apart from those amounts treated as capital repayments of the original loan. Additionally, tax relief is potentially restricted to 40% of the interest paid where a loan is made to a film partnership.

    Do you have to own shares to claim tax relief?

    If you want to claim tax relief you’ll either need to work for the company or own more than 5% of the issued ordinary share capital. Additionally, you cannot claim income tax relief on a loan used to purchase Enterprise Investment Scheme qualifying shares.