VCM62160 - Venture capital trust (VCT) scheme: Qualifying holdings: Requirements regarding trade

ITA/S290

The trade referred to in VCM62150 must be a qualifying trade (see VCM17000 onwards) which is carried on wholly or mainly within the United Kingdom. (As regards the meaning of that phrase, see SP3/00.) If at any time the trade ceases to be carried on wholly or mainly within the United Kingdom, the holding ceases to be part of the VCT's qualifying holdings and can never regain that status.

For shares or securities issued on or after 6 April 2011 there is no longer a requirement that the trade be carried on wholly or mainly in the United Kingdom. Instead, the requirement is that the issuing company must have a permanent establishment in the UK (see VCM17025).

If at any time the issuing company ceases to have a permanent establishment in the UK, the holding ceases to be part of the VCT’s qualifying holdings and can never regain that status.