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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: partnerships and joint ventures

FA00/SCH15/PARA19

Neither the company nor any subsidiary of it may be a member of a trading partnership which includes another company if that trade is one on which the company relies in order to meet the trading activities requirement (see VCM3000 onwards), where one or more persons and their associates own more than 75% of the share capital of both companies.

Similarly, neither the company nor any subsidiary of it may be a party to a joint venture if:

  • another company is also a party to the joint venture,
  • its participation is part of the trade on which it relies in order to satisfy the trading activities requirement (see VCM3000 onwards), and
  • one or more persons and their associates own more than 75% of the share capital of both companies.

A joint venture is a trading venture carried on by two or more persons under arrangements that fall short of creating a partnership.