SCHEDULE 28B Venture Capital Trusts: Meaning of “qualifying holdings”
Requirement that a proportion of the holding in each company must be eligible shares
10B
(1)
The requirement of this paragraph is that eligible shares represent at least 10 per cent. by value of the totality of the shares in or securities of the relevant company (including the relevant holding) which are held by the trust company.
(2)
For the purposes of this paragraph the value at any time of any shares in or securities of a company shall be taken (subject to sub-paragraph (4) below) to be their value immediately after—
(a)
any relevant event occurring at that time; or
(b)
where no relevant event occurs at that time, the last relevant event to occur before that time.
(3)
In sub-paragraph (2) above “relevant event”, in relation to any shares in or securities of the relevant company, means—
(a)
the acquisition by the trust company of those shares or securities;
(b)
the acquisition by the trust company of any other shares in or securities of the relevant company which—
(i)
are of the same description as those shares or securities, and
(ii)
are acquired otherwise than by virtue of being allotted to the trust company without that company’s becoming liable to give any consideration;
or
(c)
the making of any such payment in discharge, in whole or in part, of any obligation attached to any shares in or securities of the relevant company held by the trust company as (by discharging that obligation) increases the value of any such shares or securities.
(4)
If at any time the value of any shares or securities held by the trust company is less than the amount of the consideration given by the trust company for those shares or securities, it shall be assumed for the purposes of this paragraph that the value of those shares or securities at that time is equal to the amount of that consideration.
(5)
In this paragraph “eligible shares” has the same meaning as in section 842AA.