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Oxford Technology (OXT)


Friday 12 September, 2014

Oxford Technology

Statement re HMRC Decision

Statement re HMRC Decision

For Immediate Release                                                         
12th September 2014


HMRC Decision

Shareholders will be aware from an RNS on 13 March 2014 that Oxford Technology VCT Plc ("OT1") had received notice that Her Majesty's Revenue and Customs ("HMRC") had withdrawn VCT approval for the Company due to a purchase of shares in Scancell Holdings Plc ("Scancell") which HMRC considered as breaching the VCT rules. 

Following analysis and representations by OT1's legal advisors, Joseph Hage Aaronson LLP ("JHA") and Jonathan Bremner of Counsel, HMRC notified OT1 that it had set aside that decision pending further review (see RNS of 6 June 2014).  Subsequently, following further representations by our legal advisors, HMRC indicated that it was reserving its position and that corrective action was required to be taken in order for OT1 to retain VCT status (see announcement to shareholders of 5 August 2014).  A proposal for the necessary corrective action was made by JHA on 12 August 2014.  On 5 September 2014, HMRC indicated that it would be minded to permit the VCT to retain its VCT status for tax purposes provided that the corrective steps proposed by JHA were taken within an agreed timescale.

Following this indication, we have continued to work together with HMRC towards a satisfactory conclusion.  We are now pleased to be able to confirm that the corrective steps proposed by our legal advisors have been successfully completed and HMRC have been so informed.  We have received formal acknowledgement from HMRC that the corrective action taken has been sufficient and that OT1 will now retain VCT status going forward subject to continued compliance with VCT rules. 

This means that the tax reliefs previously given to the VCT and its shareholders will not be disturbed, and the entitlement to benefit from future reliefs available to VCTs will likewise continue. 

Following the corrective action, the VCT's holding in Scancell is now as it was prior to July 2013.  The corrective action undertaken has resulted in no financial gain or loss to the VCT.

We wish to record our appreciation for the constructive way in which HMRC have engaged with us during the last six months. We also wish to thank Joseph Hage Aaronson LLP and Jonathan Bremner for their pro-active and professional work, which has enabled this matter to be brought to its satisfactory conclusion. 

The Directors look forward to being able to focus future discussions with shareholders on the progression of the portfolio.  As shareholders will be aware from reading the Annual Report, the OT1 portfolio contains some exciting (if still relatively early stage) companies, and the Directors continue to focus on generating maximum value for shareholders from OT1's holdings in these.

The content of this RNS has been approved by HMRC. 

Alex Starling - Chairman of the Board of Directors
Richard Roth - Director

Further Enquires:
Lucius Cary on 01865 784466

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Oxford Technology VCT plc via Globenewswire


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