Once shares have been allotted, investors will receive both a share certificate and a tax certificate. The tax certificate will be needed to claim income tax relief. Tax relief can be claimed by entering the VCT investment amount in the “Other tax reliefs” section on your tax return.
Alternatively, if you pay tax under PAYE, and want the relief immediately, you can contact your Tax Office in order to adjust your tax code.
Tax relief on subscriptions for shares in a VCT is restricted where, within six months (before or after) that subscription, the investor had disposed of shares in the same VCT. Existing Shareholders should be aware that the sale of existing Shares in the VCT within these periods could, therefore, put their income tax relief relating to a new Offer at risk.
For further clarification, please see the
HMRC website: https://www.gov.uk/guidance/venture-capital-schemes-tax-relief-for-investors#how-to-claim-relief