Finance Act 2002

Power to facilitate mergers of VCTsU.K.

8(1)The Treasury may by regulations make provision authorised by paragraph 9 for cases where—

(a)there is a merger of two or more companies each of which is a venture capital trust immediately before the merger begins to be effected, and

(b)the merger is forbona fide commercial reasons and is not part of a scheme or arrangement the main purpose of which, or one of the main purposes of which, is the avoidance of tax.

(2)Provision made by regulations under sub-paragraph (1) applies—

(a)in cases, and

(b)subject to conditions (including conditions requiring approvals to be obtained),

specified by the regulations.

(3)Provision made by regulations under sub-paragraph (1) may apply in relation to any merger where the transactions for effecting the merger take place on or after 17th April 2002.