Venture Capital Trust relief fell from 30% to 20% for shares issued on or after 6 April 2026. Enter the issue date, the amount and your tax bill to see your Income Tax relief, what the shares really cost, when the 5-year holding period ends and what your tax-free dividends are worth.
New shares issued to you
VCT relief comes off your Income Tax bill for the tax year the shares are issued to you. For new shares issued on or after 6 April 2026 it's 20% of the amount you invest. The Finance Act 2026 replaced the old rate of 30%, so shares issued up to 5 April 2026 got 30%. You can claim on up to £200,000 a tax year, and the relief can't be more than the Income Tax you pay. You can only claim it for the tax year you invest, so it can't be carried back.
| Shares issued | Income Tax relief | On £10,000 | On £200,000 |
|---|---|---|---|
| On or after 6 April 2026 | 20% | £2,000 | £40,000 |
| Up to 5 April 2026 | 30% | £3,000 | £60,000 |
You need to keep your whole VCT investment for 5 years. If you dispose of the shares within 5 years of their issue, the relief is withdrawn, or reduced if you sell them at arm's length. If any of the shares stop qualifying in that time, you lose the Income Tax relief on them.
You don't pay Income Tax on dividends from a VCT, whether the shares were newly issued or bought from someone else, as long as you're 18 or over and the VCT shares you acquired in that tax year were worth no more than £200,000. The calculator shows the tax you save at the 2026/27 dividend rates of 10.75%, 35.75% or 39.35%.
When you sell VCT shares you pay no Capital Gains Tax on any profit, again whether you bought them new or second-hand. The other side is that there's no relief for a loss on VCT shares against your income.
Claim in your Self Assessment tax return for the tax year the shares were issued. You don't have to wait for the return: you can ask HMRC to adjust your tax code or give you a refund. You can claim up to 4 years after the end of the tax year you invested in.
For shares bought directly in smaller companies, compare the EIS tax relief calculator and the SEIS tax relief calculator. The dividend tax calculator shows what ordinary dividends cost you, and the Income Tax calculator helps you estimate the bill the relief comes off.
20% for new VCT shares issued on or after 6 April 2026. It was 30% for shares issued up to 5 April 2026, before the Finance Act 2026 changed the rate.
You can claim relief on up to £200,000 a tax year. The relief can't be more than your Income Tax bill, and you can only claim it for the tax year the shares are issued.
At least 5 years. If you dispose of the shares within 5 years of their issue, the relief is withdrawn, or reduced if you sell them at arm's length.
Yes, for investors aged 18 or over, on VCT shares acquired within the £200,000 a year limit, whether the shares were newly issued or bought from someone else.
No. You pay no Capital Gains Tax on profits when you sell VCT shares, but you can't set a loss on them against your income.
No. VCT relief can only be claimed for the tax year you invest, unlike EIS and SEIS relief, which can be treated as coming from the previous tax year.
