Income Tax Act 2007 Schedule 2 paragraph 69

The no guaranteed loan requirement

Paragraph 69 provides a transitional exemption from the no guaranteed loan requirement in section 288 for certain shares or securities acquired before 6 April 2018 using older pre-1997 funds.

• Section 288 (the no guaranteed loan requirement) does not apply to shares or securities acquired before 6 April 2018 in certain circumstances
• The exemption covers investments made using money raised by issuing shares in or securities of the VCT before 2 July 1997
• It also covers investments made using money derived from the reinvestment of those pre-July 1997 funds
• This is a transitional provision preserving the qualifying holding status of older investments that pre-date the guaranteed loan restriction