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HMRC internal manual

Venture Capital Schemes Manual

CVS: investors and reliefs: receipt of value: general

FA00/SCH15/PARA47 & PARA53

Where a qualifying investing company receives any value (see VCM91310) within the period of restriction related to the shares (see below) from the issuing company, the relief which it has obtained or would otherwise be entitled to claim is reduced.

This general rule is extended to cover receipts of value by persons who are at any time in the period of restriction connected with the investing company and receipts of value from persons who are at any such time connected with the issuing company.

The rule does not apply in cases where the amount of value is insignificant (see VCM91330) or where the recipient restores the value to the person who provided it (see VCM91340).

The ‘period of restriction’ referred to above is the period which begins one year before the shares were issued and ends at the end of the qualification period (see VCM91050) related to the shares.