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HMRC internal manual

Venture Capital Schemes Manual

From
HM Revenue & Customs
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VCT: VCT approval: breach of approval conditions: circumstances in which approval will not be withdrawn

SI1995/1979 Regulations 8A - 8J

HMRC will not withdraw approval where the breach fulfils the following conditions:

  1. the breach was as a result of circumstances outside the control of the company,
  2. those circumstances prevented the company from meeting the conditions
  3. the company took all reasonable steps to continue to meet the conditions
  4. the breach is notified to HMRC as soon as it is identified, and
  5. the position is corrected without delay.

These conditions are explained in more detail in VCM54370 onwards.

In relation to ITA07/S274 HMRC will not withdraw approval where the company’s ordinary share capital is not listed or admitted to trading for a period following issue of the shares provided that:

  • the shares are issued with the declared intention of immediate listing,
  • no transactions relating to the shares take place between issue and listing, and
  • the shares are listed as soon as possible after issue.