Income Tax Act 2007 section 282

Withdrawal of VCT approval in cases for which provision made under section 280(3)

Section 282 gives the Treasury power to make regulations allowing the withdrawal of VCT approval to take effect retrospectively — that is, from a date earlier than the date the company actually receives its withdrawal notice — in specific circumstances linked to the qualifying holdings conditions.

• The Treasury may make regulations allowing VCT approval withdrawal to be backdated to a time earlier than the notice date, but only where the withdrawal arises because of conditions that would have been met were it not for modifications made under section 280(3)
• The backdating only applies for the purposes of specific legislation identified in the regulations — it does not automatically apply across all tax provisions
• The earliest date to which a withdrawal can be backdated is still limited by the rules in section 281(4), which set a floor on how far back a withdrawal notice can reach
• The regulation-making powers under this section are subject to the same procedural requirements as regulations made under Chapter 5 (powers, winding up and mergers of VCTs), as set out in section 324