Part 6Venture capital trusts
Chapter 5Powers: winding up and mergers of VCTs
Winding up
317Power to facilitate disposal to VCT by VCT-in-liquidation
1
Regulations may make provision authorised by subsection (2) for cases where shares in or securities of a company are acquired by a VCT from a VCT-in-liquidation.
2
The provision that may be made under subsection (1) for such a case is—
a
provision for conditions mentioned in section 274(2) (conditions for approval as a VCT) to be treated for the purposes of section 274(1) as met, or as conditions that will be met, with respect to the VCT in relation to periods ending after the acquisition,
b
provision for the shares or securities acquired to be treated, at times after the acquisition when they are held by the VCT, as meeting the requirements of Chapter 4 (provisions for determining whether shares or securities form part of qualifying holdings), and
c
provision for shares in the VCT issued in connection with the acquisition of the shares or securities from the VCT-in-liquidation and either—
i
issued to a person who is a member of the VCT-in-liquidation, or
ii
issued to the VCT-in-liquidation and distributed by it in the course of its winding up or dissolution to a person who is one of its members,
to be treated, for the purposes of Schedule 5C to TCGA 1992 (VCTs: deferred charge on re-investment), as representing shares in the VCT-in-liquidation held by that person.
3
Provision under subsection (1) may be made so as to apply in relation to shares or securities acquired from a VCT-in-liquidation—
a
at any time during its winding up, or
b
during periods of its winding up specified by, or determined under, regulations.
4
In this section “securities” means any securities and includes any liability that is a security in relation to a company because of section 285(2) (securities).