Income Tax Act 2007 Schedule 2 paragraph 63

Interpretation of Chapter 2

Paragraph 63 provides transitional rules for interpreting key definitions in Chapter 2 (VCT relief) when dealing with shares issued before certain dates.

• For shares issued before 6 April 2007, "eligible shares" takes its meaning from the old ICTA provisions as they stood at the time the shares were issued
• For shares issued before 6 April 2006, the qualifying holding period is 3 years rather than 5 years
• These transitional rules modify section 273(1) of the Income Tax Act 2007, which contains the standard definitions for Chapter 2
• The effect is to preserve the rules that applied at the time older shares were originally issued, rather than applying the current definitions retrospectively