VCM62300 - VCT scheme: qualifying holdings: time when requirements to be satisfied

ITA/S286 A holding in a company cannot be part of the VCT's qualifying holdings unless that company satisfies certain requirements (see VCM62310 onwards). By contrast with some of the rules about qualifying companies under the EIS, the need for these requirements to be satisfied is not limited to a particular period; the question is always whether the holding qualifies at any particular time. Where an investee company does not satisfy the requirements continuously it is possible for a holding in it, which is initially part of the VCT's qualifying holdings, not to be so for a time, and then requalify.

Inspectors will need to notify the Small Company Enterprise Centre whenever they become aware that a holding in a company no longer satisfies all the requirements.