VCT: VCT approval: breach of approval conditions: circumstances in which approval will not be withdrawn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:
- the breach was as a result of circumstances outside the control of the company,
- those circumstances prevented the company from meeting the conditions
- the company took all reasonable steps to continue to meet the conditions
- the breach is notified to HMRC as soon as it is identified, and
- 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.