These Regulations amend the Venture Capital Trust Regulations 1995 (S.I. 1995/1979) (“the principal Regulations”) so as to withdraw payable tax credits from investors in venture capital trusts with effect from 6th April 1999. The amendments reflect the amendments made to section 231 of the Income and Corporation Taxes Act 1988 (c. 1) by section 30 of the Finance (No. 2) Act 1997 (c. 58) as a result of which entitlement to tax credits on qualifying distributions made on or after 6th April 1999 is limited to individuals chargeable to tax on those distributions.

Regulation 1 provides for citation, commencement and effect, and regulation 2 for interpretation.

Regulations 3 and 4 repeal Chapter II of Part III of the principal Regulations (comprising regulations 10 to 21) and certain definitions in regulation 2(1) of the principal Regulations which relate only to that Chapter.

Regulation 5 inserts a new regulation 21A in Part IV of the principal Regulations requiring a venture capital trust to make periodic returns of amounts subscribed by investors for shares in that trust.

Regulation 6 amends regulation 22(4) of the principal Regulations so as to provide for additional particulars to be included in the return containing particulars of investments.