Income Tax Act 2007 section 273

Interpretation of Chapter

Section 273 defines key terms used in the chapter on Venture Capital Trusts (VCTs), including the meaning of "eligible shares" and the scope of share disposals.

• Eligible shares are ordinary shares in a VCT that carry no preferential rights to dividends or assets on winding up for five years from issue
• Eligible shares must also carry no present or future right to be redeemed during that five-year period
• References to a disposal of shares include the disposal of any interest or right in or over those shares
• Transitional provisions preserve certain rules for shares issued before 6 April 2007