Mergers (Dec 2024)

Depending on your tax circumstance, you can benefit from up to 30% upfront income tax relief (if the shares are held for at least five years) and no Capital Gains Tax (CGT) on any growth in value of your shares.

After the VCT shares are allotted, investors are issued with a share certificate and an income tax certificate. The share certificate confirms the amount of shares held and the income tax certificate is needed to claim tax relief. There are two ways to claim:

• Using a Self Assessment Form: VCT tax relief can be applied for by using the SA101 additional information form as part of an investor’s tax return. The total amount invested into a VCT needs to be completed on the appropriate section of the form. This will result in either a lower income tax bill or refund of income tax already paid.
• Using PAYE: Once an investor has received their income tax certificate they can write to or call HMRC who will adjust their tax code to reflect the income tax relief. This means the amount of income tax paid will be reduced on a monthly basis until the income tax relief is used up. When writing to HMRC investors need to include their national insurance number, P60 (if applicable) and a photocopy of the income tax certificate.

The maximum amount you can invest that qualifies for tax benefits is £200,000 per tax year. The minimum investment will vary depending on the VCT and will be stipulated when an offer for subscription is announced.

Once the VCT application form has been completed and funds have cleared, shares in the VCT are allotted on the next allotment date specified in the prospectus. Approximately 30 days after allotment both a share certificates and income tax certificates are issued to investors.

VCTs have to comply with HMRC rules in order for investors to receive tax relief. The main rules are:

• At least 80% of their investments must be in qualifying investments, which are small companies (maximum £15m) that are unquoted or traded on AIM.
• VCTs must invest in these companies within three years of raising new money.

VCTs should be viewed as long-term investments. The minimum investment period in order to receive tax relief is 5 years. VCT shares can be sold before this but any tax relief obtained will need to be repaid.

A VCTs measures its value through its NAV (Net Asset Value), namely the value of the underlying portfolio companies divided by the number of shares in issue. As these portfolio companies are not typically listed on a stock exchange, they don’t have an exact market value so the VCT’s Manager board of directors will estimate a value using established valuation methods and principles. The VCT’s board of directors review and approve the Manager’s suggested valuations.

These valuations are usually produced twice a year although Albion’s VCTs are valued quarterly.

The Boards of the Albion VCTs have established policies to buy back shares in the market, subject to the overall constraint that such purchases are in the Company’s interest, including the maintenance of sufficient resources for investment in existing and new portfolio companies and the continued payment of dividends to shareholders, available cash reserves and regulation.

It is the stated policy of the Companies that the Boards will target such buy-backs to be in the region of a 5% discount to net asset value.

To sell shares in an Albion VCT you need to engage a stockbroker who will then to contact the market maker, Panmure Liberum, who will offer to buy the shares back so long as market conditions and liquidity permit.

If any of the VCTs are in a closed period, Panmure Liberum may add the shareholder to an indicators sellers list, until after the VCTs announce their half yearly or annual results.

If you wish to sell shares or purchase shares in any of our VCTs, your own stockbroker should contact the market maker, Panmure Liberum (UK) Limited.

Contacts:

• Chris Lloyd – 020 7886 2716 chris.lloyd@panmure.com
• Paul Nolan – 020 7886 2717 paul.nolan@panmure.com

Please note: Panmure Liberum cannot take calls from the general public, they will only deal with your bank or broker.

View the Buyback Guide HERE.

It is an option that allows investors to receive the dividend in the form of additional VCT shares instead of having it paid out receiving a cash payment.

Albion’s shareholders who want to receive dividend as cash can amend their income option via the online portal Investor Centre. For those who do not want to amend via the portal), must complete a payment of interest form and send directly to:

Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol
BS99 6ZZ