VCM - Recent changes to this manual

Below are details of the amendments that were published on 13 September 2007 (see the update index for all updates). 

SectionTitle and details of update
Various - see VCM10075The majority of changes arise from the rewrite of the legislation covering the EIS and VCTs as part of the ongoing Tax Law Rewrite programme. The substance of the legislation, and the guidance on it, remain the same.
Legislation that was previously in the Income and Corporation Taxes Act 1988 (ICTA) is now in the Income Tax Act 2007 (ITA). These amendments are solely to cover the new ITA statutory references and some terms which have changed by the rewrite. Chapters covering VC loss relief (VCM45000 to 49000) will be updated during autumn.
We have also taken the opportunity to clarify and update some of the guidance.





VCM12100

and

VCM17310
There are also some amendments and additions arising from changes to the legislation made by Finance Act 2007. These affect all three of the venture capital schemes. These are set out below.

The investment process: employment of money: company using it


Qualifying trades: royalties and licence fees: waivers from 6 April 2000

Minor amendments to the guidance covering changes to the rules on qualifying 90% subsidiaries and relevant intangible assets.
VCM12055The investment process : Limit on amount raised in any 12-month period
This is new guidance covering the introduction of a limit on the amount of money a company can raise under the three schemes in any 12 month period.
VCM15105Investee companies: Limit on number of employees

This is new guidance on the limit on the number of employees in a company (or group of companies) using the schemes.
VCM60136-9VCT scheme: general: approval: 70% qualifying holdings condition: disregard of disposals
Guidance on the disregards of certain disposals in calculating whether 70% of a VCT’s holdings are in qualifying holdings.