What is the 6-month rule for VCT?

The six-month rule prevents investors from claiming Income Tax relief twice on the same investment by selling and repurchasing shares in the same VCT. If a client buys and sells shares in the same VCT within six months of each other, Income Tax relief is not available on the new shares up to the value of the shares sold. If relief has already been claimed, it may need to be repaid, regardless of which transaction happened first.