VCM58050 | VCT returns: identifying investments funding by different issues of shares: completing the return

The VCT is required to identify the source of funding of a given investment on its annual return if the origin of the funds is relevant to the question of either:

• whether that investment has breached any of the conditions for a qualifying investment, or

• whether the investment should be included when calculating the 70% qualifying holding condition (80% for accounting periods starting on or after 6 April 2019) and the 30% or 70% eligible shares condition.

VCM58070 explains how the origin of funds can be demonstrated.

If the origin of the funds is not relevant, for example where an investment in a company would be a qualifying investment regardless of the date on which the funds were raised, and the investment is not within 3 years of a further issue then the VCT is not required to indicate the origin of the funds for that investment on the return.