Income Tax Act 2007 Schedule 2 paragraph 68

The maximum qualifying investment requirement

Paragraph 68 of Schedule 2 provides a transitional rule that disapplies part of the maximum qualifying investment requirement for shares or securities issued before 6 April 2007.

• The maximum qualifying investment requirement limits the amount a VCT can invest in a single company for it to count as a qualifying holding.
• Section 287(3)(b) sets out part of this requirement, but it does not apply to shares or securities issued before 6 April 2007.
• This transitional provision ensures that investments made before the Income Tax Act 2007 came into force are not retrospectively caught by the new rule.
• Shares or securities issued on or after 6 April 2007 are fully subject to the maximum qualifying investment requirement in section 287(3)(b).