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HMRC internal manual

Venture Capital Schemes Manual

From
HM Revenue & Customs
Updated
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CVS: general: qualifying issuing companies: qualification period

FA00/SCH15/PARA3

The investing company is not able to obtain relief unless the company issuing the shares is a qualifying issuing company in relation to that share issue. A company is a qualifying issuing company if it satisfies certain conditions that are discussed at VCM90180 onwards. Most of these conditions have to be satisfied throughout the qualification period related to that share issue. The relief may be given before the end of that period provided those conditions are expected to be satisfied throughout it.

The qualification period related to any shares is defined as the period which starts when the shares are issued and ends with the later of:

  • the day immediately before the third anniversary of the date of issue of the shares, and
  • where at the time of the issue the company which is to use the money raised by the issue has not yet started to carry on that trade, the day immediately before the third anniversary of the date when it starts to trade.