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HMRC internal manual

Venture Capital Schemes Manual

From
HM Revenue & Customs
Updated
, see all updates

VCT: VCT approval: withdrawal of approval: effects of withdrawal of full approval

ITA07/S281

If full approval is withdrawn the consequences of this are:

For the company:

  • its exemption from CT on chargeable gains is lost.

For the investor in the company:

  • ‘front end’ income tax relief may be withdrawn (see VCM51090);
  • any deferred gain comes into charge (see VCM53000 onwards);
  • subsequent dividends from the company will not be exempt from income tax (see VCM51200); and
  • any subsequent gains on disposal of shares in the company will not be exempt from CGT (see VCM52000 onwards).