Benefits of Venture capital

You get 30% income tax relief subject to an annual investment limit of £200,000 and a minimum holding period for shares issued in the tax year 2006-7 and onwards. Potentially you don't pay income tax on dividends received up to the maximum permitted investment of £200,000. Potentially you don't pay capital gains tax if the shares are sold up to the maximum permitted investment of £200,000. You can claim the tax relief upfront, without having to wait until you fill in your tax return.