Which of the following is true about Capital Gains Tax (CGT) relief for VCT?

A Venture Capital Trust (VCT) is a type of investment vehicle in the UK that offers certain tax incentives to encourage investment in smaller companies. One of the primary benefits of investing in a VCT is that gains made on the disposal of shares held in the VCT are exempt from Capital Gains Tax (CGT). This exemption does not come with stipulations such as a time commitment—investors do not have to hold their shares for a specific duration to benefit from this exemption. The full exemption provides investors with a compelling reason to consider VCTs as a viable investment option, as they can realize gains on their investments without facing CGT liabilities.

Investment in VCTs also provides investors with income tax relief on their initial investments, but this is separate from the CGT exemption. Hence, the statement that VCTs are always exempt from Capital Gains Tax is accurate and reflects the nature of the tax advantages associated with these trusts. The other options, while addressing aspects of taxation, do not capture the full exemption offered by VCTs.