Income Tax Act 2007 section 316

Power to make provision about distributions by VCT-in-liquidation

Section 316 gives the government power to make regulations that control how tax rules apply to distributions made by a Venture Capital Trust (VCT) that is being wound up or dissolved.

• Regulations may specify which tax rules apply, do not apply, or apply with modifications to distributions from a VCT that is in liquidation
• Distributions covered include those made in the course of dissolving or winding up the VCT
• The regulations can apply to distributions made at any time during the winding up, or only during specific periods defined by the regulations
• This gives flexibility to tailor the tax treatment of payments to shareholders when a VCT is being brought to an end