Income Tax Act 2007 section 315

Power to treat conditions for VCT approval as met with respect to VCT-in-liquidation

Section 315 allows regulations to be made so that a Venture Capital Trust (VCT) that is being wound up can still be treated as meeting the conditions required for VCT approval, and also allows regulations to treat that approval as withdrawn in certain circumstances.

• Regulations may treat the conditions for VCT approval as met, or as conditions that will be met, for a VCT that is in liquidation.
• This treatment can apply either throughout the entire winding-up process or during specified periods within it.
• Separate regulations may, for particular tax purposes, treat VCT approval as having been withdrawn from a VCT-in-liquidation, with effect from a specified time, even though the deeming provision would otherwise prevent HMRC from withdrawing approval.
• These powers originate from provisions in Schedule 33 to the Finance Act 2002 and provide flexibility to manage the tax treatment of VCTs during liquidation.