- From 21 July 2019, investments made by natural persons and trusts will be capped at R2.5 million and for companies, investments will be capped at R5 million. This cap is per tax year.
- Where any loan or credit is used to finance the acquisition of a venture capital share and remains owing at the end of the year of assessment, the deduction is limited to the amount for which the taxpayer is deemed to be at risk.
- No deduction will be allowed where the taxpayer (investor) is a connected person to the venture capital company after the expiry of a period of 36 months commencing on the first date of the issue of venture capital shares. Also no deduction will be allowed where the taxpayer holds at the end of any year of assessment following the expiry of a period of 36 months commencing on the first date of the issue by the venture capital company of venture capital company shares of any class, more than 20% of the venture capital company shares of that class.