EDGE_G_4 12-59-34_Layout 1 - The Tax Shelter Report

Edge Performance VCT plc
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• Although it is intended that the status of the Company as a VCT will be retained, there is no guarantee that this will
be achieved (further details of the taxation implications of an investment in the Company are set out in Part 3 of this
document). If the Company fails to meet the qualifying requirements for a VCT, this could result in:
(i) the withdrawal of income tax relief granted to Qualifying Investors;
(ii) the loss of income tax relief on dividends paid (or subsequently payable) to Shareholders;
(iii) the loss of tax relief previously obtained in relation to corporation tax on capital gains made by the Company;
(iv) a liability to tax on capital gains on any disposal of the G Shares; and
(v) the loss of the listing of the Company on the Official List and admission to trading on the London Stock
Exchange.
• To comply with VCT legislation, in respect of each of the Qualifying Companies in which the Company invests at
least 70% of its capital, those Qualifying Companies must have gross assets of not more than £7 million prior to
investment and fewer than 50 employees. Such companies generally have a higher risk profile than larger companies
although this risk should be mitigated by the minimum revenue returns to be sought by the Events Companies.
• Changes in legislation concerning VCTs in general, and Qualifying Investments and qualifying trades in particular,
may restrict or adversely affect the ability of the Company to meet its objectives and/or reduce the level of returns
which would otherwise have been achievable.