VCM60140 - Venture capital trust (VCT) scheme: General: Approval - the 30% and 70% eligible shares condition

ITA/S274(2)

A minimum percentage of a VCT’s qualifying holdings must be in “eligible shares” throughout its most recent accounting period. The percentage applicable varies according to when the monies were raised by the VCT. For the definition of “eligible shares” see VCM60145.

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In respect of monies raised by, or derived from monies raised by the VCT prior to 6 April 2011:

At least 30% by value of a VCT’s qualifying holdings must, throughout its most recent accounting period, be in “eligible shares”.

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In respect of monies raised by, or derived from monies raised by the VCT on or after 6 April 2011:

At least 70% by value of a VCT’s qualifying holdings must, throughout its most recent account period, be in “eligible shares”.

  • This will mean that a VCT will have separate pools of money and will need to show its compliance with the condition by reference to those separate pools.

    • However, where provisional approval is given, this rule is relaxed - see VCM60120.

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