Venture capital trusts: anti-avoidance

New legislation around venture capital trusts (VCTs) has countered particular forms of share buy-back arrangements

Anti-avoidance legislation was introduced to prevent VCTs returning share capital to investors within three years of the end of the accounting period in which the VCTs issues the shares. 

With effect from 6 April 2014, Finance Act 2014, Schedule 10, introduced measures to counter particular forms of share buy-back arrangements and the use of share premium accounts to return capital to shareholders.

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