VCM60140 - VCT scheme: general: approval: 30% eligible shares condition

ITA/S274(2)

At least 30% by value of a VCT’s qualifying holdings must, throughout its most recent accounting period, be in ‘eligible shares’.

'Eligible shares' means shares in a company which:

• are comprised in the company's ordinary share capital,
• carry no present or future preferential right to dividends or to the company’s assets in a winding up, and
• carry no present or future right to be redeemed.

However, where provisional approval is given, this rule is relaxed - see VCM60120.