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Where Taxpayers and Advisers Meet

6 month rule on venture capital trusts

Posts: 6
Joined: Sun Mar 26, 2017 7:20 pm

6 month rule on venture capital trusts

Postby Oldtramp » Thu May 17, 2018 6:36 pm

I appreciate that I can't sell long-held VCT shares and claim tax relief if I participate in a new issue of shares in the same trust within 6 months. I also understand that, if I sell shares in a VCT, HMRC construes me to be selling those I've held for longest.

What, then, if I have 5000 shares in trust X, held for more than 5 years and, this year, participate in its new issue, buying another 5000, wait one day after the new shares are issued, then sell the 'old' 5000?

Clearly I carry investment risk and need more free cash to work this way.

But, is it caught by the 5-year rule or not?

Posts: 1
Joined: Tue Jun 12, 2018 6:26 pm

Re: 6 month rule on venture capital trusts

Postby SusanaP » Tue Jun 12, 2018 6:31 pm

Interesting question. I keep investigating it and I have not found the correct answer to it. Hopefully another member of the community will help us

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