Welcome to Oxford Technology
The OT(S)EIS Fund - Currently Open for Investment
For more than 25 years, Oxford Technology has specialised in investing in start-up and early stage technology companies based near Oxford. Investments in start-up technology companies are notoriously among the highest risk forms of investment. There are so many things which can and do go wrong. But the SEIS scheme greatly reduces the losses on any failures. And the other side of the high risk coin is that the capital gains when things go well can be substantial. And under the SEIS and EIS schemes all such gains are free of tax.
So, Oxford Technology has issued and Information Memorandum seeking to raise a minimum of £3m and up to a maximum of £15m to be invested over a three year period, initially, provided good quality opportunities can be found, in SEIS technology start-ups, and then in years 2-3 in follow on EIS investments, many of which are expected to be in those of the earlier SEIS investees which are developing well.
The fund has begun making investments, but OT(S)EIS remains open to new investors.
Information on this fund, and how to apply, can be found here: OT(S)EIS Information
Oxford Technology also continues to manage four of its previous funds, the Oxford Technology Venture Capital Trusts. These are now fully invested, but information on these funds can be found here: Venture Capital Trusts
HMRC confirms continuation of VCT Status OT1 and OT3
Shareholders will be aware from an RNS on 13 March 2014 that Oxford Technology VCT Plc and Oxford Technology 3 VCT Plc (OTVCT)had received notice that Her Majesty's Revenue and Customs ("HMRC") had withdrawn VCT approval for the Company due to a purchase of shares in Scancell Holdings Plc ("Scancell") which HMRC considered as breaching the VCT rules.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 OTVCT's legal advisors, Joseph Hage Aaronson LLP ("JHA") and Jonathan Bremner of Counsel, HMRC notified OTVCT 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 OT VCT 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 OT VCT 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 VCTs.
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 OT VCT's holdings in these.
The content of this RNS has been approved by HMRC.Friday, September 12, 2014
The AGMs for all four Oxford Technology VCTs took place on the 27th of August. All resolutions were passed.
The Proxy Votes were as follows:Wednesday, August 27, 2014
AGM - Wednesday 27th August
The AGMs for all four Oxford Technology VCTs will be taking place on the 27th of August, at the Magdalen Centre, Oxford Science Park. For further details, please download the relevant files below:Tuesday, August 05, 2014
Decision by HMRC to withdraw VCT approval for OT1 & OT3 set aside - HMRC will reconsider afresh the issue of withdrawal of VCT approval
Following consideration of a legal opinion given on behalf of the Oxford VCTs by Graham Aaronson QC and Jonathan Bremner of Counsel, instructed by Joseph Hage Aaronson LLP, HMRC have today notified Joseph Hage Aaronson LLP that the decision dated 7 March 2014 to withdraw venture capital trust approval from Oxford Technology VCT Plc ("OT1") and Oxford Technology 3 VCT Plc ("OT3") has been set aside.
HMRC will now consider afresh whether it will be appropriate to withdraw VCT status from OT1 and OT3, and to assist their consideration of this matter they have invited Joseph Hage Aaronson LLP to make additional representations relating to the issue.
The effect of this is that the VCT status of OT1 and OT3 is, at the moment, to be treated as not having been withdrawn so that shareholders need not take any steps in relation to this matter. If, in the light of the further representations HMRC decide that VCT approval should not be withdrawn then that will conclude the matter so far as the shareholders' tax position is concerned.
If, on the other hand, HMRC decide that such approval should be withdrawn, then shareholders will be notified accordingly and will need to consider what steps they should take.Friday, June 06, 2014
VCT Annual Financial Results Announced
The Net Asset Values as at 28th February 2014 have been announced as:
OT1 VCT - 65p Dividends to date 52.7p
OT2 VCT - 26p Dividends to date 10.5p
OT3 VCT - 98p Dividends to date 10p
OT4 VCT - 69p Dividends to date 17pTuesday, May 27, 2014
Details of Guidance from HMRC regarding Notifications
[Details taken from e-mail communication with HMRC]
Income tax relief - notification
Where an event occurs that results in any “VCT relief” (upfront income tax relief) falling to be withdrawn, an investor must within 60 days of “coming to know of the event” give notice to HMRC. It is only those investors who were issued shares within 5 years of the date of the withdrawal (7 March 2014) that will be effected.
We would recommend that notification is sent to our Small Company Enterprise Centre which administers the venture capital schemes:
Small Company Enterprise Centre (Admin team)
Telephone: 03000 588907
To withdraw the relief HMRC will be required to make assessments on the investors for the tax year in which the relief was obtained. We would not intend to make these assessments until the withdrawal has been determined as final, however if the appeals are to be heard by the tribunal we may consider issuing protective assessments sooner due to the expected delay in any hearing taking place. Any assessments made under these circumstances would include an explanation that they were protective and could be appealed against and stayed pending settlement of the VCTs’ own appeals. Should we move to issue assessments we would give you advance notice.
Withdrawal of CGT deferral relief
Investors who may have deferred gains brought back into charge are not under an obligation to notify HMRC at this time as this will be treated as a chargeable event occurring on the date of withdrawal and will fall within the 2013/14 tax year. We would expect any gains to be included in investor’s 2013/14 tax returns which would be due on 31 January 2015. Should the withdrawal still be under appeal at this point we would expect investors to include reference to the gain with a note of the circumstances within their tax return.
Details of the impact of withdrawal of VCT approval on investors were summarised in the statement HMRC published on 20 March, available here
http://www.hmrc.gov.uk/news/vct-note.pdfThursday, May 22, 2014
OT1 & OT3’s appeal against HMRC withdrawal of VCT approval – Update
At the meeting held 28 April between HMRC and Oxford Technology and its legal advisers, it was agreed that certain detailed arguments in support of the VCTs' appeal would be submitted in writing to HMRC, who will consider them as urgently as possible.
It is expected that these detailed arguments will be provided to HMRC before the end of this week.Wednesday, April 30, 2014
OT1 & OT3’s appeal against HMRC withdrawal of VCT approval – Next Steps
On 26 March 2014 OT1 and OT3 appealed against HMRC’s withdrawal of VCT approval. The appeal will be led by Graham Aaronson QC of Joseph Hage Aaronson LLP.
The statutory appeal process requires that the appeal is first made to HMRC. In the event that the matter cannot be resolved at that initial stage, provision is then made for a review by HMRC of its decision and, if the outcome of the review is not favourable, an appeal to the First-tier Tribunal (Tax Chamber), which is independent of HMRC.
HMRC has helpfully offered to meet to discuss the appeals process and any request for re-approval with Oxford Technology directly. Oxford Technology has accepted this offer and it will therefore be engaging in a dialogue with HMRC in order to determine whether this matter can be resolved by agreement. To this end a meeting has been scheduled for 28 April 2014 between HMRC and Oxford Technology.
If resolution cannot be reached via agreement, the further avenues of review and appeal will thereafter be explored. If it is necessary to pursue the appeal process to the First-tier Tribunal, the likely timescale for such a hearing is in the region of 9 to 14 months from the lodging of the appeal with the Tribunal.
Individuals who have invested in OT1 and OT3 should, as previously indicated, seek their own personal financial advice from their stockbroker, bank manager, solicitor, accountant, fund manager or other independent financial adviser who specialises in advising on the acquisition or disposal of shares in order that they may ascertain the implications associated with the Company losing its VCT approval and take appropriate action.
Further announcements will be made to keep shareholders fully informed of developments.Thursday, April 17, 2014
OT1 & OT3 lodge appeal against HMRC withdrawal of VCT approval
OT1 & OT3 have sent a letter of appeal to HMRC, dated 26th March.
The appeal will be led by Graham Aaronson QC of Joseph Hage Aaronson LLP.
Further announcements will be made to keep shareholders fully informed of developments.Thursday, March 27, 2014
OT1 & OT3 - VCT approval withdrawn
Owing to an inadvertant technical error, HMRC has withdrawn VCT approval from OT1 & OT3. Oxford Technology intends to appeal against this decision.
For more information, please read the following announcements on the London Stock Exchange:
OT2 & OT4 are unaffected by this withdrawal.Friday, 14 March, 2014
VCT 3rd Quarter Results Announced
The Net Asset Values as at 30th November 2013 have been announced as:
OT1 VCT - 61p Dividends to date 52.7p
OT2 VCT - 26p Dividends to date 10.5p
OT3 VCT - 93p Dividends to date 10p
OT4 VCT - 67p Dividends to date 17pFriday, December 20, 2013
VCT Interim Results Announced
The Net Asset Values as at 31st August 2013 have been announced as:
OT1 VCT - 70p Dividends to date 52.7p
OT2 VCT - 26p Dividends to date 10.5p
OT3 VCT - 100p Dividends to date 10p
OT4 VCT - 67p Dividends to date 17pMonday, October 07, 2013