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HMRC internal manual

Venture Capital Schemes Manual

From
HM Revenue & Customs
Updated
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CVS: general: employment of money raised

FA00/SCH15/PARA36

The money raised by the issue of the shares and of any other shares of the same class issued on the same day must be employed, within a certain time (see VCM90140), wholly for the purpose of a trade. But any amount employed for some other purpose is disregarded if it is insignificant.

The trade in question may be carried on either by the company or by a subsidiary. Alternatively the money may be employed for the purpose of research and development (see ITA07/S1006) from which it is intended that a trade, carried on or to be carried on within the same group, will benefit or will be derived.