Income Tax Act 2007 section 320

Meaning of "VCT-in-liquidation"

Section 320 defines the term "VCT-in-liquidation" for the purposes of the VCT rules, setting out the conditions a company must meet to qualify for this status.

• A VCT-in-liquidation is a company that is being wound up, whether under UK law or the law of any other territory
• The company must have held VCT status immediately before its winding up commenced
• The winding up must be for genuine commercial reasons and must not be part of a scheme or arrangement whose main purpose, or one of whose main purposes, is tax avoidance
• Regulations may prescribe when a company's winding up is treated as commencing or ending where it is wound up outside the UK or under the laws of more than one territory