HMRC permanently reinstates Oxford Tech VCT status

HM Revenue & Customs has permanently reinstated venture capital trust status to the Oxford Technology VCT and the Oxford Technology 3 VCT.

Fundweb revealed in March both the Oxford Technology 3 VCT and the Oxford Technology VCT had their approvals removed after breaching rules for holding more than 15 per cent of their funds in one firm.

An error resulted in both VCTs’ holdings in research firm Scancell exceeding the permitted level.

This was the first time a VCT had ever had its approval withdrawn. Oxford Technology then started discussions with HMRC after a formal appeal was filed on 26 March.

It was then revealed in June that HMRC had set aside its original decision to remove venture capital trust approval to reconsider the decision.

The latest HMRC announcement confirms the VCT status has now been reinstated. Oxford Technology says the holding has now been reduced to the level before the breach.

According to FE data, the OT3VCT trust had assets of £4.4m as of February while the OT1VCT held £4.1m.

A stock exchange announcement says: “We are now pleased to be able to confirm that the corrective steps proposed by our legal advisors have been successfully completed and HMRC have been so informed.  We have received formal acknowledgement from HMRC that the corrective action taken has been sufficient and that [the VCTs] will now retain VCT status going forward subject to continued compliance with VCT rules. 

“This means that the tax reliefs previously given to the VCT and its shareholders will not be disturbed, and the entitlement to benefit from future reliefs available to VCTs will likewise continue. “