VCM60160 - VCT scheme: general: approval: 15% value test

ITA/S274(2)

One of the conditions of approval is that no holding in a single company may exceed 15% by value of a VCT’s investments. For the purposes of this test, a group of companies is treated as if it were a single company. Where a VCT has a holding representing more than 15% of the value of all its investments, the 15% value test will not be regarded as breached, if

• at the time of the acquisition of the holding, or
• at the time of its revaluation following an addition to or payment for that holding,

its value does not exceed 15% of the value of all the VCT’s investments at the time of acquisition or revaluation.

The value of each holding of investments for the purpose of this test is found in accordance with ITA/S278 see VCM60150.

From 6 April 2007 the term ‘investment’ for the purpose of this test includes cash and other funds held by the VCT or held by a third party on its behalf - see VCM60135.