The VCT scheme 5. The VCT scheme differs from reinvestment relief and the EIS in that VCTs are companies listed on the Stock Exchange which specialise in investing in higher-risk, unlisted trading companies. By investing in a VCT, the individual investor is able to spread the risk over a number of such qualifying companies. The investor is entitled to various income tax and capital gains tax reliefs, which remain unchanged. Qualifying corporate bonds 6.
Some corporate bonds give rise to chargeable gains on disposal, but QCBs are exempt.
The qualifying conditions for a security to be a QCB depend upon the status of the holder. Exchequer costs 7.