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HMRC internal manual

Venture Capital Schemes Manual

VCT: VCT qualifying holdings: maximum amount to be raised annually through risk finance investments requirements

ITA07/292A

Companies issuing shares or securities to a VCT are subject to an investment limit which operates on a rolling twelve-month basis.

The annual investment limit is £5 million, taken over a rolling 12 month period ending with the date that the risk finance investment is made.

The limit was increased to £10 million for knowledge-intensive companies receiving investments on or after 6 April 2018 (see VCM8162).

See VCM8121 and VCM8122 for more details of the rules.

See also VCM54180 as regards the restriction on the amounts to be invested in any company in a twelve-month period included in the VCT approval conditions. If the VCT approvals condition at ITAS274(2) and S280B is breached in circumstances which do not result in the VCT having its approval withdrawn, S292A applies to treat the whole holding as non-qualifying, not just the amount of the holding by which the limit is exceeded.