VCM55430 - VCT: VCT qualifying holdings: information powers

ITA07/S312A

With effect from 6 April 2012, HMRC has the power to require the provision of information where it believes that the relevant company has issued a holding to a VCT in connection with, or in consequence of, disqualifying arrangements (see VCM55280).

The legislation provides than an officer of HMRC may issue a notice requiring ‘any person concerned’ to provide:

• a declaration in writing stating whether or not, according to the information which that person has or can reasonably obtain, disqualifying arrangements exist or have existed, and
• any other information which the officer may reasonably require for the purposes of ITA07/S299A and which that person can reasonably obtain.

The officer can specify the period of time within which the information is to be provided, but it must not be a period of less than 60 days.

‘A person concerned’ for the purposes of this power includes any of:

• the company invested in
• the VCT making the investment
• any person connected with either of those companies or
• any person whom the officer has reason to believe is or was a party to the arrangements in question.

Failure to provide the information may result in a penalty under TMA70/S98.