The Venture Capital Trust (Amendment) Regulations 2016

Regulation 22A (particulars to be returned in respect of relevant investments, raised money and derived money relating to the traceable period)

4.  After regulation 22 insert—

“Particulars to be returned in respect of relevant investments, raised money and derived money relating to the traceable period

22A.— (1) Where condition one or condition two applies, the return required by regulation 22(1) must also contain the particulars specified in paragraphs (4) and (5).

(2) Condition one is that on the last day of the specified period—

(a) the company held a relevant investment, and

(b) that relevant investment would not have been capable of being regarded as comprised in the company’s qualifying holdings on that day unless it had been acquired using raised money or derived money.

(3) Condition two is that—

(a) on the last day of the specified period the company held derived money,

(b) on that day, the company maintained information identifying derived money or relevant investments acquired using raised money or derived money, and

(c) the purpose or one of the main purposes of maintaining that information was to be able to make any future relevant investment which would not be capable of being comprised in the company’s qualifying holdings unless it was made using derived money.

(4) The particulars specified are—

(a) for each relevant investment held at any time during the specified period which the company acquired using raised money or derived money—

(i) where the investment was acquired using raised money, the date or dates the company raised the money used to acquire that investment,

(ii) where the investment was acquired using derived money, the date or dates the company raised the money from which that money derived,

(iii) the name, company registration number and address of the registered or principal office of the company in which the relevant investment was made, and

(iv) if held on the last day of the specified period, the value of the relevant investment on that day; or

(b) a statement by the company that it did not hold any such relevant investments during the specified period.

(5) The particulars specified are—

(a) for derived money held by the company on the last day of the specified period—

(i) the amount of that money, and

(ii) the date or dates the company raised the money from which that money derived; or

(b) a statement by the company that it did not hold any such money on that date.

(6) In this regulation—

“derived money” means money, including money in the company’s possession or a sum owed to it over which it has account-holder’s rights, which is derived from the investment by the company of raised money, and section 285(5) and (6) has effect for interpreting “account-holder’s rights”;

“raised money” means money raised by the issue during the traceable period of shares in or securities of the company;

“a relevant investment” means shares in or securities of another company which are held by the company;

“the specified period” has the meaning given in regulation 22(2);

“the traceable period” means the period beginning on 6th April 1995 and ending on 5th April 2008.”