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Linked Sales / Dividend Reinvestment

Sophisticated and complex high-risk tax-sensitive investments in small companies: handle with care
EssexFox
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Linked Sales / Dividend Reinvestment

#599063

Postby EssexFox » June 30th, 2023, 2:56 pm

All, a bit of a newbie question; have searched but not been able to find a definitive answer (here on elsewhere):

As I understand it VCT subscriptions under dividend reinvestment plans are no considered linked sales under section 264A of the Income Tax Act (clause 8):

This section does not apply if, or to the extent that, the subscription for the relevant shares is a result of the individual electing to reinvest dividends payable to the individual on shares in the VCT, in acquiring further shares in the VCT


Consequentially, it is possible to sell shares in a VCT held for 5+ years and subscribe to new shares under a dividend reinvestment scheme within a 6-month period without impacting the ability to claim tax relief on the newly subscribed shares?

Thanks

scotia
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Re: Linked Sales / Dividend Reinvestment

#599099

Postby scotia » June 30th, 2023, 6:26 pm

I belief that Kidman found the relevant document from the Finance Act 2014
viewtopic.php?f=25&t=2428&p=56179&hilit=Finance+Act+2014#p56179


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