VCM62500 - VCT scheme: qualifying holdings: requests for advance assurances

A company which has been offered, or is hoping to be offered, funding by a VCT may seek assurances from HMRC that following the issue of a holding to the VCT that holding will be regarded as part of its qualifying holdings. It may also seek an assurance that all or some of the shares to be issued will be eligible shares (see VCM12010). Requests for such assurances should be made to the Small Company Enterprise Centre whose address and contact details are at VCM10050.

In some cases, particularly where the purpose of the VCT's investment is to fund a management buy-out or buy-in, Inspectors may be approached by a third party, perhaps in advance of the incorporation of the company to be invested in. While there is no objection to any specific causes of concern about the potential application of the legislation relating to qualifying holdings being discussed with a third party at this stage (or indeed at any stage, provided the right of the company to have its affairs dealt with in confidence is respected), it should be made clear that no actual assurance can be given to any person other than the company, when formed, or its authorised representative. Similarly, a company whose business is to be bought by another company with money raised from a VCT is entitled to expect that HMRC will not discuss its affairs with any third party.