Income Tax Act 2007 section 284

Power to make regulations as to procedure

Section 284 gives the Treasury the power to make regulations governing the procedures around Venture Capital Trust (VCT) approvals, including applications, breaches, withdrawals, record-keeping obligations, and tax accountability.

• Regulations may cover the application process for VCT approval and the procedures for withdrawing such approval
• A company may apply to HMRC for relief where it has breached (or expects to breach) the conditions for maintaining its VCT approval, potentially preventing withdrawal for a determined period
• VCTs must comply with obligations regarding accounts, records, returns and information, and must notify HMRC if approval conditions are no longer met or are at risk of not being met
• Regulations may specify who is liable to account for any tax that becomes due if a VCT approval is withdrawn