VCM62180 - Venture capital trust (VCT) scheme: Qualifying holdings: Activity at time of investment

ITA/S291 At the time when the investment is made, the company which is to use the money (whether the issuing company or a subsidiary) must be either carrying on a qualifying trade or preparing to do so. If at that point it is doing no more than preparing to carry on a qualifying trade, it is a condition that trading must be commenced within two years.

For “preparing to trade” see VCM20030. As regards the date when trading is commenced, see BIM70500 onwards.