VCM54330 - VCT: VCT approval: maintaining approval: where full approval given

ITA07/S274(2)

Where a company has full approval, or where provisional approval has become full (see VCM54030 and VCM54320), it must ensure that in relation to each accounting period:

its income in that accounting period was derived wholly or mainly from shares or securities (see VCM54050),	(nature of income condition);
at least 30% by value of its qualifying holdings were in holdings of eligible shares throughout that accounting period (see VCM54140),	(30% eligible shares condition);
from 6 April 2011 at least 70% by value of its qualifying holdings were in eligible shares throughout that accounting period; this applies to shares acquired by money raised after this date (see VCM54140),	(70% eligible shares condition);
at least 70% by value of its investments were in qualifying holdings of shares or securities throughout that accounting period (see VCM54080 onwards),	(70% qualifying holdings condition);
no holding in any company represented more than 15% by value of the VCT’s investments at any time during that accounting period (see VCM54070),	(15% holding limit condition);
its ordinary share capital was included in the official UK list throughout that accounting period: on or after 6 April 2011 a VCT be admitted to trading on a regulated market in accordance with Directive 2004/39/EC of the European Parliament (see VCM54040),	(listing condition);
it did not retain more than 15% of its income derived in that accounting period from shares and securities (- see VCM54060),	(income retention condition).

However, if further ordinary shares are issued VCM54170 will apply.

Where any of these conditions are not met, approval may be withdrawn (ITA07/S281).