Venture Capital Trusts share buy-backs

The government is today publishing a technical consultation on particular types of share buy-backs used by Venture Capital Trusts (VCTs).

As set out at Budget 2013, the government is concerned that the use of certain buy-back and reinvestment arrangements, sometimes referred to as ‘enhanced’ share buy-backs, are damaging to the industry and do not represent good value for money to the taxpayer.

This consultation document sets out the case for change and invites comments on options to address this issue. The government continues to be supportive of the industry as a whole and believes that VCTs can play an important role in supporting investment into small and growing companies.