Transfer of investments in specie from a VCT-in-liquidation to a venture capital trust8
1
This regulation applies where –
a
a VCT-in-liquidation has made all reasonable endeavours to sell shares or securities comprised in its qualifying holdings at, or as near as may be to, their market value, but has been unable to do so;
b
the VCT-in-liquidation, during its prescribed winding-up period, transfers the shares or securities to a venture capital trust by way of a bargain made at arm’s length, or for a consideration not less than their market value; and
c
the value of all shares or securities transferred under this regulation by the VCT-in-liquidation to venture capital trusts during its prescribed winding-up period does not exceed 7.5% of the aggregate value of the investments of the VCT-in-liquidation at the commencement of its winding up.
2
For the purposes of paragraph (1)(c) the value of investments (including shares or securities) shall be taken to be –
a
those used in the VCT-in-liquidation’s statement of affairs, or
b
where sub-paragraph (a) does not provide a value for the investment, its market value at the commencement of the winding up.
3
Where the requirements of any of paragraphs 1(2)(b) and 6 to 8 of Schedule 28B were satisfied (or deemed to be satisfied) to any extent or for any period in relation to the investment when held by the VCT-in-liquidation (whether before or after the commencement of its winding up), they shall be treated as satisfied to the same extent or for the same period in relation to the investment when held by the venture capital trust.