What is the income tax relief percentage for VCT if held for at least five years?

For investments in Venture Capital Trusts (VCT), the income tax relief percentage is an essential incentive for investors. When investors hold their VCT shares for at least five years, they can benefit from a significant income tax relief rate.

The correct percentage of income tax relief for VCT shares held for a minimum of five years is 30%. This relief is designed to encourage investment in smaller, high-risk companies by providing tax incentives, making it a more attractive option for investors. By offering a 30% relief on the amount invested, the VCT scheme aims to stimulate the equity investment market and support the growth of emerging businesses.

This tax relief is typically available on investments up to a certain limit, further promoting investment in the sector. The strategic role of the VCT scheme in attracting capital to young businesses should be acknowledged, especially given the competitive nature of investment opportunities available to potential investors.