VCM54182 | VCT: VCT approval: minimum investment on further issue condition

ITA07/S274(2) and S280BA

The minimum investment on further issue condition applies where an approved VCT with issued share capital subsequently issues more shares in an accounting period beginning on or after 6 April 2018

The VCT is then required to invest at least 30% of the money raised in qualifying shares or securities within 12 months following the end of the accounting period in which that later share issue takes place.

The purpose of this condition is to encourage VCTs to invest funds raised more quickly.