Introduction Summary
1.Section 40 and Schedule 8 make a range of changes to the Venture Capital Trust (VCT) scheme. A trade which consists substantially in the receipt of feed-in tariffs (with certain exceptions) will become a non-qualifying activity. Monies used to acquire shares or stock in a company will no longer be regarded as employed for the purposes of a qualifying business activity. A “no disqualifying arrangements” test is introduced, and there is a relaxation to the restriction on the amount of money a VCT may invest in a company. The Schedule also raises the thresholds for eligible companies under the scheme. The increases in these thresholds are subject to State aid approval.