VCM60400 - Venture capital trust (VCT) scheme: General: Maintaining approval - where full approval given
ITA/S274(2)
Where a company has full approval, or where provisional approval has become full (see VCM60120 and VCM60370), it must ensure that in relation to each accounting period:
| its income in that accounting period was derived wholly or mainly from shares or securities (see VCM60130) | (the nature of income condition); |
| at least 30% by value of its qualifying holdings were in holdings of eligible shares throughout that accounting period (see VCM60140) | (the 30% eligible shares condition); |
| from 6 April 2011 at least 70% by value of its qualifying holdings were in eligible shares throughout that accounting period; this applies to shares acquired by money raised after this date (see VCM60140) | (the 70% eligible shares condition); |
| at least 70% by value of its investments were in qualifying holdings of shares or securities throughout that accounting period (see VCM60135 onwards) | (the 70% qualifying holdings condition); |
| no holding in any company represented more than 15% by value of the VCT’s investments at any time during that accounting period (see VCM60160) | (the 15% holding limit condition); |
| its ordinary share capital was included in the official UK list throughout that accounting period: on or after 6 April 2011 a VCT be admitted to trading on a regulated market in accordance with Directive 2004/39/EC of the European Parliament (see VCM60111) | (the listing condition); and |
| it did not retain more than 15% of its income derived in that accounting period from shares and securities (- see VCM60170) | (the income retention condition). |
However, if further ordinary shares are issued VCM60180 will apply.
Where any of these conditions are not met, approval may be withdrawn (ITA/S281).
