Part 6Venture capital trusts

Chapter 5Powers: winding up and mergers of VCTs

Winding up

320Meaning of “VCT-in-liquidation”

1

In this Chapter “VCT-in-liquidation” means a company—

a

that is being wound up (whether or not under the law of a part of the United Kingdom and whether under the law of one, or more than one, territory),

b

that was a VCT immediately before the commencement of its winding up, and

c

whose winding up is for genuine commercial reasons and is not part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax.

2

Regulations may, for purposes of this Chapter, make provision as to when a company's winding up is to be treated as commencing or ending in a case where it is wound up otherwise than under the law of a part of the United Kingdom or otherwise than under the law of a single territory.