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HMRC internal manual

Venture Capital Schemes Manual

From
HM Revenue & Customs
Updated
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CVS: investors and reliefs: receipt of value: circumstances

FA00/SCH15/PARA49 - 50

The circumstances in which value may be received by an investing company from an issuing company, and how that value is quantified, are as shown below. In this context references to payments or disposals made to a person include references to payments or disposals made to them indirectly, or made to their order, or made for their benefit.

Circumstances Amount of value received
   
Repayment, redemption or repurchase of any shares or securities held by the investing company The amount received or, if greater, the market value of the shares or securities
Payment to that company for giving up its right to any such shares or securities on their cancellation or extinguishment The amount received or, if greater, the market value of the shares or securities
Repayment of any debt owed to the company, where made under arrangements made in connection with the issue The amount received or, if greater, the market value of the debt
Payment to the company for giving up its right to any debt on its extinguishment The amount received or, if greater, the market value of the debt
Release or waiver of any debt owed by the company, including failure to obtain payment of it within 12 months of the date when payment was due, and discharging a debt owed to a third party or undertaking to discharge it The amount of the liability
Making a loan or advance to the investing company (other than one repaid before the share issue) The amount of the loan or advance
Provision of a benefit or facility for a director or employee of the investing company, or their associate The cost of providing the benefit or facility, less any payment made for it
Gift of an asset, or its transfer, to the company for less than its market value The difference between its market value and any consideration given for it
Payment to the company for an asset of more than its market value The difference between its market value and the consideration given for it
Any other payment to the company, except a qualifying payment (see VCM91320) The amount of the payment