VCM50020 - CVS: general: the shares

FA00/SCH15/PARA35

The shares in respect of which reliefs under the CVS are to be obtained must satisfy the following conditions:

• they must be ordinary shares (see VCM12010),
• throughout the qualification period (see VCM50070 onwards) they must carry no preferential right to dividends or to the company's assets in a winding up, and no present or future right to be redeemed (see VCM12030),
• the subscription for the shares must consist wholly of cash,
• the shares must be fully paid up at the time of issue.

As regards the last condition, shares are not to be regarded as fully paid up unless the whole of the subscription price has actually been paid. This contrasts with the position under company law, which treats an undertaking to pay at a future date as equivalent to payment.