Mechanics of the VCT tax break

coyrls

adam81 wrote: »

Thanks all,
You won't get £3k relief on a £10k purchase for the following 5 years?

No, £15K tax relief for a £10K investment, did you really think that was likely?

ffacoffipawb

coyrls wrote: »

No, £15K tax relief for a £10K investment, did you really think that was likely?

Must be true, Diane Abbott said so. 😄😄😄

jamesd

adam81 wrote: »

So the relief only comes in the year you purchase the VCT? You won't get £3k relief on a £10k purchase for the following 5 years?

Yes, just once for each initial buy. You can sell after five years and buy again to get another 30%, have to wait six months between sell and buy it it's the same VCT. I'm getting about 10% tax exempt dividends a year on the after tax value of my Albion VCT holding. A handy add-on to my P2P and work income.

stoozie1

jamesd wrote: »

YI'm getting about 10% tax exempt dividends a year on the after tax value of my Albion VCT holding. A handy add-on to my P2P and work income.

Apologies for the stupid question, by after tax value, do you mean, (your initial purchase £ - the tax relief you got for it) x 10% annually?