VCM60150 - VCT scheme: general: approval: value of a holding

ITA/S278

For the purposes of the 70% qualifying holding condition(see VCM60135 onwards), the 30% eligible shares condition (see VCM60140) and the 15% holding limit condition (see VCM60160), the value of any holding of investments is its value when acquired unless:

• the holding is added to, or
• any payment is made in discharge, in whole or in part, of any obligation attached to the holding which increases the value of the holding (for example, for partly-paid shares, where a second or subsequent instalment is paid).

Where a holding is added to, or such a payment is made, the value of the holding, for the purposes of the tests, is its value after the most recent addition or payment.

A holding is only revalued if it is added to by a further holding of investments of the same description. So if a holding is of ordinary shares and the VCT later acquires preferential shares, the ordinary shares will not be revalued.