VCM55175 | VCT: VCT qualifying holding: permitted company age

ITA07/S294A

For an investment to be a qualifying holding, the investee company must receive its first risk finance investment no later than 7 years after its first commercial sale (10 years for knowledge-intensive companies) - except in certain specific circumstances.

Companies may continue to receive risk finance investments after the end of the 7 or 10 year period in certain circumstances.

See VCM8150+ for more details of the rules.

See also VCM54183 as regards the permitted maximum age condition: if the VCT approvals condition at ITAS274(2) and S280C is breached in circumstances which do not result in the VCT having its approval withdrawn, S294A applies to treat the holding as non-qualifying.