For an investment to be a qualifying holding, the investee company must receive its first risk finance investment within the initial investing period (defined below). This ensure that company in which investment is being made is 'young'. The aim of the legislation is to focus VCT on early stage companies and companies that need several rounds of tax advantaged funding before the market will invest in them.
If investment is received after the end of the initial investment period the permitted age requirement may still be met if either of the two conditions detailed in the table below are met.
| Conditions | Commentary |
| Condition A | The first condition is that there was an earlier relevant investment (see E3.255) in the relevant company which was within the initial investing period and the money raised was used for the same qualifying business activity (or part thereof) as is to benefit from the instant share issue1. |
| Condition B | The second condition is that relevant investments in the relevant company in the 30 days up to and including |
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Web page updated on 17 Mar 2025 16:48