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VCM54240 | VCT: VCT approval: issue of shares or securities: apportioning value

From HM Revenue & Customs · Venture Capital Schemes Manual

SI2661/2002 Regulation 11

Where the value of the new shares or securities issued to the VCT needs to be apportioned, it must be done as follows.

  • Firstly, by having regard to the historic value of the old shares and securities,

  • Otherwise using any method which is just and reasonable, and

  • In any event, aiming to secure that the requirements of the 15% holding limit condition, the 70% qualifying holding condition and the 30% or 70% eligible shares condition ) (see VCM54070+) or the 10% proportion of eligible shares requirement (ITA07/S289) (see VCM55080) do not cease to be met.

  • This same method will be used if any company A shares are retained in the circumstances described in VCM54220.