VCM60422 - VCT scheme: general: inadvertent breach of approval conditions: circumstances in which approval will not be withdrawn

HMRC will not withdraw approval where the breach fulfils the following conditions:

i. the breach is inadvertent,
ii. the breach is notified to HMRC as soon as it is identified, and
iii. the position is corrected without delay.

These three conditions are explained in more detail in (VCM60424) onwards

In relation to ICTA88/S842AA (2)(e) HMRC will not withdraw approval where the company’s ordinary share capital is not listed for a period following issue of the shares provided that:

i. the shares are issued with the declared intention of immediate listing,
ii. no transactions relating to the shares take place between issue and listing, and
iii. the shares are listed as soon as possible after issue