VCM62010 - Venture capital trust (VCT) scheme: Qualifying holdings: Introduction

As explained at VCM60110, in order to obtain and retain approval as a VCT the company must continuously have at least 70% of its investments in qualifying holdings. The guidance which follows deals with the requirements which a holding in a company needs to satisfy in order to be part of the VCT's qualifying holdings. For this purpose a “holding” in a particular company is the sum of the shares and securities (see VCM62050) which it holds in that company.

In certain circumstances in which a holding would not qualify as a whole, it is to be treated as comprising two separate holdings, the division being made in such a way that one of them qualifies (see VCM62110).