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Frank Hovis

Sale And Repurchase Of Vct

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Just got an offer through on one of my VCTs.

They will repurchase shares, and at the same time have a new issue.

I got 40% tax relief on buying, but now 5 years are up I can sell without having to repay this and then put the money back in, getting another 30% tax relief*

I'm happy with the fund and I can't see the downside - anybody done this before?

*Tax relief on this works like pension contributions without the tie-up until retirement. So put in 10k and reclaim 4k. Now sell for 9k (slightly down), put in 10k and reclaim 3k. So I end with 10k of funds for 4k (10+1-4-3). And it's paid a decent dividend over the years as well.

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Just got an offer through on one of my VCTs.

They will repurchase shares, and at the same time have a new issue.

I got 40% tax relief on buying, but now 5 years are up I can sell without having to repay this and then put the money back in, getting another 30% tax relief*

I'm happy with the fund and I can't see the downside - anybody done this before?

*Tax relief on this works like pension contributions without the tie-up until retirement. So put in 10k and reclaim 4k. Now sell for 9k (slightly down), put in 10k and reclaim 3k. So I end with 10k of funds for 4k (10+1-4-3). And it's paid a decent dividend over the years as well.

Go for it! If you have tax to offset, it's a no-brainer!

Out of interest, which VCT is this? I'll be looking for some more investments this tax year.

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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