Income Tax Act 2007 Schedule 2 paragraph 86

Winding up of the relevant company

Paragraph 86 modifies the winding-up rule for determining qualifying holdings where shares or securities were issued before 17 March 2004.

• When a relevant company is being wound up, special rules apply to determine whether shares or securities still count as qualifying holdings of a venture capital trust.
• The general rule in section 312(b) sets out the conditions under which shares or securities retain their qualifying status during a winding up.
• For shares or securities issued before 17 March 2004, the wording of section 312(b) is slightly adjusted: the phrase "is not" is replaced with "not".
• This minor textual change alters the grammatical construction of the provision for pre-17 March 2004 issues, which may affect how the winding-up condition is read and applied to those older holdings.