In the recent Autumn Statement, chancellor George Osborne announced some changes to venture capital trusts (VCTs). Following a consultation over the summer, the Autumn Statement confirmed that from April 2014, VCTs will no longer be able to conduct enhanced share buybacks, whereby they offer investors a favourable price to sell back their shares to the VCT and commit to new ones, qualifying them for a second round of tax relief.
Even if it is not within the context of a share buyback, if an investor sells their VCT shares and buys shares in the same VCT within six months, they also will not qualify for the upfront 30 per cent income tax relief you receive when you invest in a VCT new issue of shares.
They would still be able to receive tax free dividends, however.