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HMRC internal manual

Venture Capital Schemes Manual

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HM Revenue & Customs
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VCT: VCT approval: 30% or 70% eligible shares condition

ITA07/S274(2)

A minimum percentage of a VCT’s qualifying holdings must be in ‘eligible shares’ (VCM54150) throughout its most recent accounting period. The percentage applicable varies according to when the monies were raised by the VCT.

In respect of monies raised by, or derived from monies raised by the VCT prior to 6 April 2011

At least 30% by value of a VCT’s qualifying holdings must, throughout its most recent accounting period, be in eligible shares.

In respect of monies raised by, or derived from monies raised by the VCT on or after 6 April 2011

At least 70% by value of a VCT’s qualifying holdings must, throughout its most recent account period, be in eligible shares.

This will mean that a VCT will have separate pools of money and will need to show its compliance with the condition by reference to those separate pools.

However, where provisional approval is given, this rule is relaxed - see VCM54340.