Venture Capital Trusts are useful tools for investors to gain substantial tax relief on their income. The rules in relation to how the tax relief applies are complex and anyone who wishes to invest should take independent financial advice before doing so.
However, it has recently been reported that the HMRC have been notified by the manager of the Oxford Technology Venture Capital Trust (VCT) that they breached the rules on investment limits. This resulted in HMRC withdrawing VCT approval effective from 7 March 2014. It is understood that Oxford Technology VCT are appealing this decision and a guide has been issued for its investors on the implications of the withdrawal of VCT approval.
It remains to be seen whether the appeal will be successful. There is a real prospect of investors having to pay tax back to the HMRC which they thought was previously protected. Investors in this situation are urged to seek independent legal advice.
Stephensons has a long track record of successful professional negligence and other claims against financial advisers and institutions. If you have suffered loss as a result of a financial or investment professional negligence, contact Liam Waine at Stephensons Solicitors LLP