Income Tax Act 2007 section 314

Power to treat VCT-in-liquidation as VCT

Section 314 allows regulations to be made so that a venture capital trust (VCT) that is being wound up can continue to be treated as a VCT for tax purposes, and so that any withdrawal of VCT approval can be treated as happening at a different time from when it actually occurs.

• Regulations may provide that specified tax rules apply as if a VCT-in-liquidation were still a VCT, either throughout or during a prescribed period of its winding up.
• Where VCT approval is withdrawn during the liquidation period, regulations may treat that withdrawal as occurring at a different, prescribed time rather than the actual date of withdrawal.
• This protects investors and companies from adverse tax consequences that might otherwise arise purely because a VCT enters a winding-up process.
• "Prescribed" means specified by, or determined under, the regulations themselves.