SCHEDULES
SCHEDULE 5Venture capital trusts: further amendments
6The minimum investment on further issue condition
After section 280B of ITA 2007 insert—
280BAThe minimum investment on further issue condition
1
A company breaches the minimum investment on further issue condition where—
a
there has been an issue of ordinary share capital of the company (“the first issue”),
b
a VCT approval of the company has taken effect on or before the day of the making of the first issue,
c
a further issue (“the further issue”) of ordinary share capital of the company has been made since the making of the first issue, and
d
the company does not, on or before the relevant deadline, invest at least 30% of the money raised by the further issue in shares or securities which when held by the company are comprised in the company’s qualifying holdings.
2
The relevant deadline is the last day of the period of 12 months immediately following the end of the accounting period in which the further issue is made.