VCM62310 - VCT scheme: qualifying holdings: nature of investee company

As mentioned in VCM62300, a holding in a company cannot be part of a VCT's qualifying holdings at any time when that company does not satisfy certain requirements. In the main these are similar to the conditions applying in the case of the other venture capital schemes.

The requirements are as follows:

• The company must exist to carry on a qualifying trade or be the parent of a trading group - see VCM15030.
• The company must be unquoted - see VCM15020.
• The company must not be controlled by another company - see VCM62330.
• The company must not control another company (unless that company is a qualifying subsidiary) - see VCM15060.
• If any subsidiary of the company is a property managing subsidiary it must be a 90% subsidiary of the company (see VCM15060).
• There are restrictions regarding the value of the company's assets immediately before and after the investment is made - see VCM15100.