VCM54420 - 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If full approval is withdrawn the consequences of this are: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• ‘front end’ income tax relief may be withdrawn (see VCM51090);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).