FAQs

The share price of Oberon AIM VCT2 plc is listed on the London Stock Exchange. You can access the latest share price for the VCT by using a number of personal share websites including the London Stock Exchange.

The VCT’s Registrar is Neville Registrars Limited, Neville House, Steelpark Road, Halesowen West Midlands B62 8HD

The Directors generally recommend a final dividend to shareholders at each Annual General Meeting of the Company and details of these dividends are included in the Annual Report to which they relate.   Subject to shareholder approval at the Annual General Meeting, the dividend will normally be paid at an agreed date following this meeting.

Interim dividends may be paid when the Directors determine that the Company has sufficient income or following a capital realisation of one of the Company’s investments.  Interim dividends may be declared at any time but are more frequently declared at the Half-Year stage.

The VCT cannot guarantee the amount of dividend to be paid in each year or the timing of payments and the level of distributions to shareholders may fluctuate.

The tax reliefs available on new shares are

• Income tax relief of up to 30% on the amount invested in new VCT shares*
• Tax free dividends*
• Tax free capital gains*

*On amounts invested up to £200,000 per person, per tax year, for individuals aged 18 or over who are UK tax payers, acquired by any means.

There is a minimum holding period of five years for new shares.

There have been different holding periods and initial VCT tax reliefs in the past.

The tax reliefs available on existing shares are

• Tax free dividends*
• Tax free capital gains*

*On amounts invested up to £200,000 per person, per tax year, for individuals aged 18 or over who are UK tax payers, acquired by any means.

There is no minimum holding period for these tax reliefs for investors in existing VCT shares.

Shareholders may wish to either:

• Give your VCT shares to your beneficiaries during your lifetime. This may reduce the overall value of an estate prior to your death as a potentially exempt transfer (PET).
• Make a bequest of your VCT shares to your beneficiaries through your will.

A potentially exempt transfer (PET) is a gift from one person to another that is not liable to inheritance tax, provided the person making the gift lives for a minimum of 7 years after the transfer is made. If death occurs within 7 years, inheritance tax is payable to the extent that the total of all PETs in the previous 7 years exceeds the nil rate band.

Individuals who receive VCT shares as a gift or as an inheritance can benefit from tax-free income and tax-free capital gains. However, there are other tax implications of gifting VCT shares, which need to be carefully considered before any actions are taken. You should consult a Financial Adviser to discuss any tax queries.

Notification of the death of a shareholder

In the event of the death of a shareholder, the person dealing with the deceased shareholder’s affairs should notify the Registrar.

VCT shares left in your will

You should ensure your executors know what should happen to your VCT shares after your death. To achieve this, your will should contain specific instructions as to who should inherit them. Otherwise, as VCT shares are listed, in the absence of any specific instructions, executors may seek to sell the shares.

Please note that while shares remain in an estate, there are no VCT tax advantages and the estate may have to declare the income for tax purposes if dividends are paid on the shares.

The following are possible practical steps VCT investors might take to minimize the time their shares are held in an estate after their death:

• Find all share certificates – sort out replacements if any are missing. Please note that an indemnity may be payable to replace a lost certificate in addition to an administration fee charged by the Registrar.
• Reduce the number of share certificates by asking the registrar to consolidate certificates. Please note the Registrar will charge fees for consolidating share certificates.
• Ensure share certificates are kept in a safe place.
• Ensure the executors know where the latest, most up-to-date version of your will is kept.

Initial VCT income tax relief & deferred capital gains

In the event of death, initial VCT income tax relief is not withdrawn even if death occurs within the minimum holding period. However, any deferred capital gains are extinguished on death.

Inheritance tax

As VCT shares are listed shares, they are valued with an individual’s estate and therefore contribute towards its overall value, part of which may be subject to inheritance tax, although transfers between spouses are (normally) not subject to inheritance tax.

Seeking advice

Estate planning can be a complex area, and we strongly recommend that you seek advice from an appropriately approved and qualified adviser who can provide advice based on your personal circumstances.

Caution: Unsolicited Calls Regarding VCT Shares

Some shareholders have reported receiving unsolicited calls from individuals claiming to represent organizations offering to purchase their VCT shares. These callers often promise prices above current market values, making their offers appear attractive. However, it’s important to be aware that these intentions are often fraudulent.

VCT shareholders should exercise caution and be very suspicious when receiving such telephone calls.

The callers can be persistent and persuasive, so it’s essential not to divulge any personal details to them. The Institute of Chartered Secretaries and Administrators and the Financial Services Authority (now the Financial Conduct Authority) have jointly issued a warning which shareholders are advised to read if they have received such an unsolicited approach.

For shareholding queries please contact:

Neville Registrars Limited, Neville House, Steelpark Road, Halesowen West Midlands B62 8HD