Part 6Venture capital trusts

Chapter 3VCT approvals

Giving of approval

280BAF1The minimum investment on further issue condition

1

A company breaches the minimum investment on further issue condition where—

a

there has been an issue of ordinary share capital of the company (“the first issue”),

b

a VCT approval of the company has taken effect on or before the day of the making of the first issue,

c

a further issue (“the further issue”) of ordinary share capital of the company has been made since the making of the first issue, and

d

the company does not, on or before the relevant deadline, invest at least 30% of the money raised by the further issue in shares or securities which when held by the company are comprised in the company's qualifying holdings.

2

The relevant deadline is the last day of the period of 12 months immediately following the end of the accounting period in which the further issue is made.