Selling Shares
Shares in the Baronsmead VCTs are listed on the London Stock Exchange. Shares can be sold through a stockbroker or authorised share dealing service. Trading in VCT shares is not particularly active, so shares tend to be valued at a discount to their net asset value and may be difficult to realise.
The broker for the Baronsmead VCTs is Matrix Corporate Capital LLP. Contact Chris Lloyd or Paul Nolan on 020 3206 7000.
Set out below is a summary of the rules dealing with the sale of VCT shares. The rules governing the tax treatment of the disposal of VCT shares can be complex. Consequently, you should consult an appropriately authorised and qualified financial or other professional adviser to ensure that you are aware of the tax treatment of the disposal of VCT shares and how these rules might apply to you considering your own personal circumstances.
Trading in VCT shares is not particularly active, so shares tend to be valued at a discount to their net asset value and may be difficult to realise. As a result, Shareholders may be offered a price which is less than the full value of the underlying assets. The spread between the buying and selling price of such shares may be wide and thus the price used for valuation may not be achievable. Whilst the Baronsmead VCTs have sought to buy back their Shares in the past there is no guarantee that there will be any buy back or other opportunity for Shareholders to realise their holding in the future.
Click below on the type of shares you are interested in selling:
Selling existing shares
As there is no minimum holding period for shares that were bought as existing shares they can be sold without loss of VCT dividend capital gains tax relief.
Disposals of VCT shares are treated on a 'first in, first out' basis.
If you have bought existing shares through the secondary market after you bought new shares, but the minimum holding period on the new shares has not yet expired, you cannot sell any of your shares without loss of initial VCT tax relief, until the minimum holding period on the new shares has expired.
Trading in VCT shares is not particularly active, so shares tend to be valued at a discount to their net asset value and may be difficult to realise. As a result, Shareholders may be offered a price which is less than the full value of the underlying assets. The spread between the buying and selling price of such shares may be wide and thus the price used for valuation may not be achievable. Whilst the Baronsmead VCTs have sought to buy back their Shares in the past there is no guarantee that there will be any buy back or other opportunity for Shareholders to realise their holding in the future.
Selling new shares
Minimum holding period
There is a minimum holding period for new shares.
If all the shares you hold in any particular VCT were bought as new shares, you can only sell shares without any tax consequences once the minimum holding period has expired.
There have been different holding periods in the past. Click here to view.
Income tax relief will need to be repaid if new VCT shares are sold within the five year holding period.
Disposals of VCT shares are traded on a 'first in, first out' basis.
If you deferred a gain by investing in new VCT shares prior to 6 April 2004, a disposal of those VCT shares could bring the gain back into charge in the tax year of disposal, depending on your circumstances.
Trading in VCT shares is not particularly active, so shares tend to be valued at a discount to their net asset value and may be difficult to realise. As a result, Shareholders may be offered a price which is less than the full value of the underlying assets. The spread between the buying and selling price of such shares may be wide and thus the price used for valuation may not be achievable. Whilst the Baronsmead VCTs have sought to buy back their Shares in the past there is no guarantee that there will be any buy back or other opportunity for Shareholders to realise their holding in the future.
Invested in shares in a VCT on more than one occasion
Disposals of VCT shares are treated on a 'first in, first out' basis.
There is a minimum holding period for shares that were bought as new shares. There have been different holding periods in the past. Click here to find out more about the minimum holding periods.
If you have bought existing shares after you bought new shares, but the minimum holding period on the new shares has not yet expired, you cannot sell any of your shares without the loss of initial VCT tax relief, until the minimum holding period on the new shares has expired.
Trading in VCT shares is not particularly active, so shares tend to be valued at a discount to their net asset value and may be difficult to realise. As a result, Shareholders may be offered a price which is less than the full value of the underlying assets. The spread between the buying and selling price of such shares may be wide and thus the price used for valuation may not be achievable. Whilst the Baronsmead VCTs have sought to buy back their Shares in the past there is no guarantee that there will be any buy back or other opportunity for Shareholders to realise their holding in the future.
Buy back policy
The Baronsmead VCTs have consistently maintained their policy of buying back shares which has historically been at a discount to NAV 10% when there is an excess supply of shares.
Shares are bought back through the market rather than directly from shareholders. As the VCTs cannot buy back their own shares during a close period (the time between a financial period end and the announcement of the results to the end of that period), dealing through the market ensures shareholders can sell their shares at a time that is convenient to them.
Shareholders who wish to sell their shares in a Baronsmead VCT would sell them in the same way as they would sell shares in companies whose shares are listed on the London Stock Exchange through their stockbroker or authorised share dealing service.
Your stockbroker / sharedealing service should note that currently there are three firms that make a market in the shares of the Baronsmead VCTs, as follows:
Matrix Corporate Capital (broker to the Baronsmead VCTs) – 020 3206 7000
Singer Capital Markets – 020 3205 7500
Winterflood Securities - 020 3400 0251
As buying and selling existing shares in VCTs can be complex, shareholders should seek to trade shares on a “best execution” basis if appropriate.
The shareholder has died
In the event of death, initial VCT income tax relief is not withdrawn even if death occurs within a minimum holding period. Any deferred capital gains are extinguished on death.
In the event of the death of a shareholder, the person dealing with the deceased shareholder's affairs should notify the Registrar, Computershare. Find out more