VCM8170 | Venture Capital Schemes: the changes in detail: company reorganisations

ITA/S247 - 248 (for EIS)

ITA/S326, 326A and 327 (for VCTs)

There are special rules where a new parent company is inserted above a company that has received a relevant investment under the EIS or from a VCT. Provided the company meets the conditions in ITA07/S247 or S326 (for EIS: VCM16030: and VCT: VCM55290) the new parent company stands in the shoes of the investee company such that the shares or investments remain qualifying shares and qualifying holdings.

The new parent company is also required to meet any continuing conditions that the investee company was obliged to meet, for example in terms of not using money raised by the investee company in a way that would breach the permitted company age requirement or for business acquisitions, and also continuing to meet the skilled employees conditions.