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Circumstances under which VCT approval can be withdrawn from a company

HMRC may withdraw approval of a company as a VCT at any time if it has reasonable grounds for believing¹:

1. Ìý

   •ÌýÌýÌýÌý that the necessary conditions were not met at the time of approval, or

2. Ìý

   •ÌýÌýÌýÌý that where they were satisfied at the time of approval that a condition would be met in an accounting period, that condition has not been met in that period, or

3. Ìý

   •ÌýÌýÌýÌý where a provisional approval was given, that the company did not comply with conditions specified in regulations in relation to the three year period allowed, or

4. Ìý

   •ÌýÌýÌýÌý where the use of money from a subsequent issue of shares has been disregarded for three accounting periods in applying the 70% test (see E3.234), that a condition for approval has not been met in the first accounting period following those three periods, or that the company has not complied with any conditions specified in regulations during those three accounting periods,