Contributed by ACCA, in their own words
New legislation around VCTs will counter particular forms of share buy-back arrangements.
Anti-avoidance legislation is to be introduced to prevent venture capital trusts (VCTs) returning share capital to investors within three years of the end of the accounting period in which the VCTs issues the shares.
The legislation will be introduced, with effect from 6 April 2014, to counter particular forms of share buy-back arrangements and the use of share premium accounts to return capital to shareholders.