Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

HMRC pulls approval for star Oxford Tech VCT on rule breach

HMRC pulls approval for star Oxford Tech VCT on rule breach

Her Majesty’s Revenue and Customs (HMRC) has withdrawn venture capital trust (VCT) approval for Oxford Technology.

VCTs are not permitted to invest more than 15% of their assets in any one company, but Oxford Technology crept over this threshold in Scancell.

Oxford Technology originally invested £125,000 in the oncology specialist in 1999, which it has continued to top up through Scancell’s floatation on AIM.

This included an option to buy shares through a discounted rights issue in August last year, which took Oxford Technology’s investment to £491,000.

This was less than 10% of the total capital raised by Oxford Technology, but a rise in Scancell’s share price tipped the holding over the 15% limit.

Oxford Technology notified HMRC of this in October 2013, as a result of which HMRC withdraw the VCT approval this month.

This means investors in Oxford Technology could now be liable for tax on both their capital and income gains from the fund.

Oxford Technology intends to appeal against the decision.

In a statement to the stock exchange, Oxford Technology said: ‘In the event that the appeal is not successful the directors of the company will need carefully to review the company’s options and consider its future as a listed company, which may lead to a cancellation of admission to the premium segment of the official list of the United Kingdom Listing Authority and to trading on the main market for listed securities of the London Stock Exchange.’

Over the past three years Oxford Technology has returned 249% on a share price basis, compared with 73% from the FTSE SmallCap excluding Investment Trusts index.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: The adviser that tempted Robin Minter-Kemp on board

Profile: The adviser that tempted Robin Minter-Kemp on board

It is rare to meet an impassioned individual who is willing to bang the drum for investment advisory right now

Wealth Manager on Twitter