Income Tax Act 2007 section 295

The unquoted status requirement

Section 295 sets out the requirement that a company receiving investment from a Venture Capital Trust must be an unquoted company, and defines what "unquoted" means in this context.

• The relevant company must be unquoted, meaning none of its shares, stocks, debentures or other securities are marketed to the general public
• Securities are treated as marketed to the general public if they are listed on a recognised stock exchange, listed on a designated overseas exchange, or dealt in outside the UK by designated means
• HMRC can designate overseas exchanges by name or by reference to a class or description of exchanges, including those defined by an overseas authority or approval
• If a company loses its unquoted status while the investing company is an approved VCT, the unquoted requirement is treated as still being met for shares or securities acquired before that time for a further 5 years