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HMRC internal manual

Venture Capital Schemes Manual

Introduction to the changes

Additional new rules were introduced by Schedules 5 and 6 to the Finance (No.2) Act 2015 (F(2)A 2015) to the Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCTs).

The additional rules apply from 18 November 2015 to:

  • shares issued under the EIS
  • investments made by VCTs and
  • for determining whether investments held by a VCT are to be regarded as qualifying holdings.

This new guidance explains how the additional rules apply. The information is presented as a new section in this manual but will be incorporated under the scheme specific headings in due course.

The majority of the underlying rules for the EIS and VCTs remain unchanged. This new guidance should be read in conjunction with the guidance in the rest of this manual.

We welcome comments on this new guidance. We will incorporate comments received by 31 August 2016 in the next version of this guidance.