Schedule 5 | Venture Capital Trusts: Further Amendments | Finance Act 2018 C3

SCHEDULE 5 Venture Capital Trusts: Further Amendments

Finance Act 2018 (2018 c 3) | Legislation

SCHEDULE 5 Venture Capital Trusts: Further Amendments

Section 17

Relaxation of restriction where there is a linked sale

(1) Section 264A of ITA 2007 (restricting VCT relief where there is a linked sale) is amended as follows.

(2) In subsection (5), at the beginning of paragraph (b) insert “if subsection (7A) applies,”.

(3) After subsection (7) insert—

“(7A) This subsection applies if—

(a) the date of the merger or restructuring referred to in subsection (7) (“D2”) is before, or the same as, the date when the individual subscribes for the relevant shares (“D1”), or

(b) D2 is after D1 but no more than two years after, and either—

(i) the individual could reasonably be expected to know at the time of subscribing for the relevant shares that the merger or restructuring referred to in subsection (7) was likely to take place, or

(ii) the main purpose of the merger or restructuring, or one of its main purposes, is to enable individuals to obtain a tax advantage in connection with VCT relief.

(7B) For the purposes of subsection (7A)—

(a) the date of the merger or restructuring is the date of the issue of shares referred