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HMRC internal manual

Venture Capital Schemes Manual

VCT: VCT qualifying holdings: company using the money


The requirement is that where a VCT invests in a company the trade or research and development that benefits from the VCT investment must be carried on by the company in which the investment is made, or a relevant qualifying subsidiary (a 90% subsidiary) that company, but it need not be the same company at all times.

This requirement is still regarded as being met if the trade in question is being carried on by a partnership of which the company or a qualifying 90% subsidiary is a partner; or if it is being carried on by parties to a joint venture to which the relevant company or a 90% qualifying subsidiary is a party. (Note: this differs from the otherwise similar requirement for EIS at ITA07/S183).