The Venture Capital Trust (Winding up and Mergers) (Tax) (Amendment) Regulations 2015

JurisdictionEngland & Wales
CitationSI 2015/361

2015No. 361

INCOME TAX

The Venture Capital Trust (Winding up and Mergers) (Tax) (Amendment) Regulations 2015

24thFebruary2015

25thFebruary2015

19thMarch2015

The Treasury make the following Regulations in exercise of the powers conferred by sections 321(1), 322(5A) and 324(1)(e) of the Income Tax Act 2007( 1).

Citation, commencement and effect

1.-(1) These Regulations may be cited as the Venture Capital Trust (Winding up and Mergers) (Tax) (Amendment) Regulations 2015 and come into force on 19th March 2015.

(2) Regulation 2 has effect in relation to new shares issued on or after 6th April 2014.

(3) In this regulation, "new shares" has the same meaning as in regulation 13 of the Venture Capital Trust (Winding up and Mergers) (Tax) Regulations 2004( 2).

Amendment of the Venture Capital Trust (Winding up and Mergers) (Tax) Regulations 2004

2.-(1) The Venture Capital Trust (Winding up and Mergers) (Tax) Regulations 2004 are amended as follows.

(2) After paragraph (9) of regulation 13 insert-

"(10) Section 281(1)(f)( 3) applies to a successor company except-

(a) it does not apply in relation to new shares issued on or after 6th April 2014 which correspond to old shares that were issued before that date, and

(b) in relation to new shares issued on or after 6th April 2014 which correspond to old shares that were issued on or after that date-

(i) those new shares are treated as having been issued at the same time as those old shares, and

(ii) the amount of the successor company's share capital and share premium in respect of those new shares is treated as the amount of share capital and share premium of the merging company in respect of those old shares.".

Harriett Baldwin

Gavin Barwell

Two of the Lords Commissioners for Her Majesty's Treasury

24th February 2015

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Venture Capital Trust (Winding up and Mergers) (Tax) Regulations 2004 ( S.I. 2004/2199) (the "Principal Regulations").

Paragraph 3 of Schedule 10 to the Finance Act 2014 (c. 26)inserted new provisions (section 281(1)(f) and (1A)) into the Income Tax Act 2007 (c. 3)which provide that where a venture capital trust (a "VCT") issues shares on or after 6th April 2014 and makes a repayment of share capital before the end of the period specified, there will be grounds for its VCT approval to be withdrawn. Paragraph 4 of Schedule 10 to the Finance Act 2014 also inserted a new...

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