VCM62520 - VCT scheme: qualifying holdings: requests for advance assurances: responding to requests

The response to a request for an assurance will take the form of a statement as to whether, on the basis of the information provided, the Inspector is satisfied that following the issue of the holding that holding will comply with the requirements of ITA/Part 6 Chapter 4 (and, where applicable, that the shares to be issued will be eligible shares).

In some cases it may be impossible to know whether the company will comply with all the requirements - for example, it might not prove possible for the company to stop excluded activities which it intends to carry on from becoming a substantial part of its trade (see VCM17040). Any assurance given in such a case will need to be expressed as being subject to the proviso that the requirement in question is satisfied. It may be appropriate to explain to the company how you intend to apply the test in question (for example, how it is proposed to decide whether the excluded activities make up a substantial part of the trade).

In some cases (see VCM62020) whether a requirement needs to be satisfied may depend on when the VCT originally raised the money which it is investing. Where appropriate, an assurance should be given in such a case subject to the proviso that the money to be invested is money which the VCT raised before the date in question. If the VCT requests confirmation that its view on that matter is accepted, it should be invited to contact CT&VAT.

Where a company supplies valuations or forecasts you should accept them but should make it clear that responsibility for their accuracy lies entirely with the company.

Where the Inspector is unable to give a favourable response, a brief explanation of the reason will be given. But it is entirely the company's responsibility to decide what amendment, if any, it should make to its proposals.