VCM54080 - VCT: VCT approval: 70% qualifying holdings condition

ITA07/S274(2)

At least 70% by value of a VCT’s investments must, throughout its most recent accounting period, be represented by shares or securities comprised in qualifying holdings of the company.

The limit is increased to 80% for accounting periods starting on or after 6 April 2019.

For the definition of securities, and an explanation of what is to be included in a company’s investments, see VCM54090.

For the definition of qualifying holdings see VCM55000 onwards.

Where a VCT disposes of a qualifying holding, the disposal is disregarded for a period of six months for the purpose of the 70% qualifying holding condition under ITA07/S280A (VCM54100).

Where a VCT disposes of a qualifying holding on or after 6 April 2019, the disposal will be disregarded for a period of 12 months for the purpose of the 70% (or 80%) qualifying holding condition under ITA07/S280A (VCM54100).