VCM62100 - VCT scheme: qualifying holdings: method of acquisition

ITA/S286(2) A VCT's holding in a company is not a qualifying holding unless it was originally issued to that VCT and has been held by it ever since. In other words, any part of the holding which consists of shares or loan stock must have been subscribed for by and issued to the VCT, and in the case of loans the company must have received the loan directly from the VCT. If a VCT disposes of a qualifying holding, or part of it, and later reacquires it, that holding or part will not be part of the VCT's qualifying holdings following the reacquisition.

It is not necessary that the company making the loan or subscribing for the shares should have been approved as a VCT before doing so.