Income Tax Act 2007 Schedule 2 paragraph 71

The trading requirement

Paragraph 71 modifies how the trading requirement under section 290 applies when determining whether shares or securities issued before 6 April 2007 form part of a company's qualifying holdings for venture capital trust purposes.

• The trading requirement in section 290 is used to assess whether shares or securities count as qualifying holdings of a VCT
• For shares or securities issued before 6 April 2007, section 290 applies with specific modifications
• Subsections (2) and (6) of section 290 are removed entirely for these pre-April 2007 holdings
• In subsection (5)(d), the second alternative (sub-paragraph (ii)) and the word "or" immediately before it are also removed