Finance Act 2002

Power to disapply, or limit operation of, section 842AA(5B) of the Taxes Act 1988

11 (1) Regulations may make provision for section 842AA(5B) of the Taxes Act 1988 (use of money raised by VCT’s further issue of shares disregarded during grace period)—

(a) not to apply, or to be treated as not having applied, in specified cases;

(b) to apply, or to be treated as having applied, in specified cases—

(i) only to a specified extent;

(ii) only if specified conditions (including conditions requiring approvals to be obtained) are satisfied.

(2) Provision made by regulations under sub-paragraph (1) may (but need not) be made so that, in any particular case, section 842AA(5B) of the Taxes Act 1988—

(a) does not apply, or is treated as not having applied, at prescribed times or with effect as from a prescribed time, or

(b) applies, or is treated as having applied, in accordance with provision made under sub-paragraph (1)(b) at prescribed times or with effect as from a prescribed time.

(3) Regulations under sub-paragraph (1) may make provision in relation to shares issued on or after 17th April 2002.

(4) In sub-paragraph (1) “specified” means specified by regulations and in sub-paragraph (2) “prescribed” means specified by, or determined under, regulations.