The VCT provisions for parent and subsidiary companies are very similar to those under EIS (see E3.135). Shares and securities in the relevant company are not a qualifying holding if1:
- Ìý
•ÌýÌýÌýÌý the company controls (on its own or with a connected person) any company that is not a qualifying subsidiary (see below), or
- Ìý
•ÌýÌýÌýÌý the company is controlled by another company (or by another company and a person connected with that company), or
- Ìý
•ÌýÌýÌýÌý there are arrangements in existence under which the company could fall within either of the two bullets above
The condition in second bullet above, does not apply where, after 15 June 1999, arrangements are made for a new company to acquire all the existing company's shares in an approved restructuring in the circumstances described in E3.2632.
See E3.248 for more on control, connected persons and controlling interest.
| Term | Commentary |
| A qualifying subsidiary | A subsidiary is a qualifying subsidiary if it, and every other subsidiary of the relevant company, satisfies the following conditions3:
– |
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Web page updated on 17 Mar 2025 16:22