VCM62110 - VCT scheme: qualifying holdings: amount of holding which qualifies

ITA/S286(4) & (5)

In certain circumstances a holding in a company is to be treated as made up of two separate holdings. This applies:

• if only part of the money raised by the issue of the holding is used within the required time (see VCM62150),
• if only part of the money is used for a qualifying trade (see VCM62150),
• if the size of the holding is such that the maximum qualifying investment is exceeded (see VCM62120).

The division is to be made in such a way as will maximise the amount which can be regarded as part of the VCT's qualifying holdings.