VCM15020 - Investee companies: requirement not to be quoted

ICTA/S293 (1A); ITA/S184; ITA/S295; FA00/SCH15/PARA16

For the EIS and CVS, at the time when the shares are issued, neither they nor any of the company's other shares or debentures or other securities may be quoted - that is, listed on an exchange which is at that time a recognised stock exchange (see CTM60310) or has been designated by HMRC, or be dealt in outside the UK by any means designated by HMRC.

In addition, at the time when the shares are issued there must not be any arrangements for such a listing, or for the company to become a subsidiary of another company, which would not satisfy this requirement.


For the VCT scheme, the rule is simply that none of the company's shares, stocks, debentures or other securities may be quoted as defined above. However, if at any time subsequent to the issue of the holding the company ceases to be unquoted, the requirement is treated as satisfied in relation to that holding for a period of five years. The purpose of this is to allow the VCT a period of grace in which to dispose of the holding should it wish to do so.

Enquiries as to whether an exchange or a means of dealing has been designated should be addressed to CT&VAT (Technical).

Shares listed on the Alternative Investment Market (AIM) of the Stock Exchange, or on the PLUS Quoted or PLUS Traded Markets, are regarded as unquoted. Registration as a public limited company (plc) does not necessarily mean that any of the company's shares are listed on a stock exchange.