VCM62515 - VCT scheme: qualifying holdings: requests for advance assurances: dealing with requests

All documents supplied have to be examined carefully. The Memorandum and Articles may contain information relating to the control of the company (see VCM62330). Subscription agreements may have the effect of overriding the Articles, or create options over shares.

Although this procedure is not statutory, HMRC is normally bound by any assurance given where the information supplied was correct and complete at the time and has not been superseded by subsequent events. It is therefore important, in order to avoid misunderstanding, that all information provided is given in writing. For the same reason, it is also important that requests should be considered very carefully, in the light of both the information supplied and information available on the tax files of the investee company and any subsidiaries, before any decision is made. Companies seeking an assurance therefore need to allow adequate time for HMRC to consider the request properly.