Triple Point TP12 - Clubfinance

Part II: TaxationThe following information is based on the lawand practice currently in force in the UnitedKingdom. It assumes that an Investor isresident or ordinarily resident in the UK and notin any other jurisdiction. If potential Investorsare in any doubt as to their tax position, theyshould consult their professional advisers.1. Tax Reliefs for Individual InvestorsInvestors must be individuals aged 18 or overto be eligible for the respective tax reliefs.Tax reliefs will only be given in relation to anindividual’s total investments in VCTs in any taxyear not exceeding £200,000.Income Tax ReliefRelief on investmentAn Investor subscribing for ordinary shares in aVCT during any tax year will be entitled to claimincome tax relief on amounts subscribed up tothe permitted maximum of £200,000. The reliefis given for the tax year in which the sharesare issued and is currently at the rate of 30 percent. The relief is restricted to the amount whichreduces the Investor’s income tax liability to niland will not be available if there is a loan linkedto the investment.If the shares are sold or otherwise disposedof (other than to the Investor’s spouse) withinfive years of their issue then some or all ofthe income tax relief obtained will have to berepaid. Shares may be transferred into thename of a nominee, provided the nomineeholds them for the Investor’s benefit.Relief on dividendsAn Investor who either subscribes for orsubsequently purchases ordinary shares in aVCT, up to a maximum of £200,000 in any giventax year, will not be liable to UK income tax ondividends paid by the VCT.Capital Gains Tax ReliefsAny gain or loss accruing to Investors on adisposal of ordinary shares in a company whichwas a VCT at the time he or she acquiredthe shares and which has remained a VCTthroughout his or her period of ownership willneither be a chargeable gain, nor an allowableloss, for the purposes of capital gains tax.2. Obtaining Tax ReliefsIncome tax relief on investmentThe Companies will give each Investor acertificate which he can use to claim the incometax relief, either (where applicable) immediatelyby obtaining an adjustment to his tax codingfrom HM Revenue & Customs or by waiting untilthe end of the tax year and claiming the relief onhis tax return.3. Investors who are not resident inthe UKAny potential Investors who are not residentor ordinarily resident in the UK should seektheir own professional advice as to theconsequences of making an investment in aVCT as they may be subject to tax in otherjurisdictions as well as in the UK.4. Approval as a VCTA VCT must be approved as such by HMRevenue & Customs. To obtain such approval itmust:(a)(b)(c)(d)derive its income wholly or mainly fromshares or securities.have at least 70 per cent by value of itsinvestments represented by “QualifyingHoldings” (see below) of which at least70 per cent by value must be in “eligibleshares”. Eligible shares are ordinaryshares which do not have any preferentialrights to assets on a winding up orany rights to be redeemed, but whichmay have a preferential dividend right, solong as that right is non cumulative andis not subject to discretion.not have more than 15 per cent by valueof its investments in any single companyor group (other than another VCT or acompany which would, if its shares werelisted, qualify as a VCT) at the time anyinvestment is made or added to.have its ordinary share capital includedon the Official List or quoted on anyregulated market in the EU or EuropeanEconomic Area).23