VCM60410 - VCT scheme: general: maintaining approval: where provisional approval given
ITA/S274(2) & S275
Where a company has provisional approval, it must ensure that:
- in relation to the accounting period which is current when the approval application is made or the next accounting period, and the following accounting periods:
| The nature of income condition | its income in them is derived wholly or mainly from shares or securities (see VCM60130); |
| The 15% holding limit condition | no holding represents more than 15% by value of its investments at any time during them (see VCM60160); |
| The listing condition | its ordinary share capital is included in the official UK list throughout them; and |
| The income retention condition | it does not retain more than 15% of its income derived in them from shares and securities (see VCM60170); and |
- In addition, by an accounting period beginning no more than three years after approval is given, and in the following accounting periods:
| The 70% qualifying holdings condition | at least 70% by value of its investments are in qualifying holdings of shares or securities throughout the accounting period (see VCM62000 onwards); and |
| The 30% eligible shares condition | at least 30% by value of its qualifying holdings are in holdings of eligible shares throughout the accounting period (see VCM60140); and |
- And
- any additional conditions included in the approval notice are met (see VCM60120).
However, if further ordinary shares are issued
VCM60180 will apply.
Where any of these conditions are not met, approval may be
withdrawn (ITA/S281).
