VCM62150 - VCT scheme: qualifying holdings: employment of money raised: general

ITA/S293 If a VCT's investment in a company is to be part of its qualifying holdings, two requirements regarding the employment of the money raised by the issue of the holding must be satisfied.

The first requirement is that the money raised by the issue has been employed wholly for the purpose of a trade carried on by a group company, or that the company intends that it shall be so employed - see VCM12070 and VCM12080.

The second requirement relates to the amount of the money which has been employed by the end of certain periods. There are three periods involved:

• the period up to 12 months after the 'trading time' (that is, the date of issue of the holding or, where the money is raised for use in preparing to trade, the date when that trade starts to be carried on). For convenience this will be referred to as the initial period - see VCM62151,
• the following 12 months (the 'second period') - see VCM62152,
• any time thereafter (the 'third period') - see VCM62153.