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HMRC internal manual

Venture Capital Schemes Manual

HM Revenue & Customs
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CVS: general: qualifying issuing companies: to be independent


The company must not be under the control of another company, or of another company and persons connected with that other company, at any time in the qualification period. In addition it is specifically provided that the company must not be a 51% subsidiary of another company - that is, owned as to more than 50% of its share capital (see ICTA88/S838(1) for the full definition).

There must not be any arrangements by virtue of which these rules could be breached either currently or at any future date. ‘Arrangements’ includes any scheme, agreement or understanding, whether or not legally enforceable.