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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 - independent individuals rule

FA00/SCH15/PARA18

Throughout the qualification period a minimum of 20% of the company’s ordinary share capital must be owned by ‘independent individuals’. For this purpose an independent individual is any individual other than one who is a director or employee of the investing company or of any company connected with it, or a relative of such an individual.

A relative for this purpose is a spouse, civil partner, lineal ancestor or lineal descendant.

If a shareholder who is an independent individual dies, the shares will be regarded as owned by an independent individual until they cease to be part of that person’s estate.