½Û×ÓÊÓƵ

The rule that the relevant company must not be under the control of another company (see E3.252) is relaxed where all the shares in the relevant company are acquired by a new company formed for that purpose, and the following conditions are satisfied¹:

1. Ìý

   •ÌýÌýÌýÌý the new company (ie the company that acquires the shares in the old company) acquires all the shares in the old company (ie the investee company that issued the qualifying shares to the VCT), and

2. Ìý

   •ÌýÌýÌýÌý at the time of the issue, the new company has no issued share capital other than subscriber shares (see E3.106 for definition) and new shares issued in exchange for old shares, and

3. Ìý

   •ÌýÌýÌýÌý the consideration is wholly in the form of new shares in the new company, and

4. Ìý

   •ÌýÌýÌýÌý the consideration for the issue of the new shares consists wholly of old shares of the corresponding description, and

5. Ìý

   •ÌýÌýÌýÌý new shares of each description are issued to the holders of old shares of the corresponding description in proportion to their