Section 261 — Income Tax Act 2007: Eligibility for relief

Eligibility for relief 261 1 An individual (“A”) is eligible for VCT relief for a tax year if—

a a VCT issues eligible shares to A in that year, b the VCT issues the shares for raising money, and c A subscribes for the shares on A's own behalf.

2 The amount in respect of which A is eligible for VCT relief for the tax year by reference to any shares is the amount subscribed by A for the shares.

3 A is eligible for VCT relief by reference to any shares only if—

za the shares are issued before 6 April 2035 , a the shares are both subscribed for and issued—

i for genuine commercial reasons, and ii not as part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax, and b A is at least 18 years old when the shares are issued.

4 A is not eligible for VCT relief by reference to any shares if they are treated as issued to A by virtue of section 195(8) of FA 2003 (tax treatment of disposal by company of its own shares). See section 271(4) for provision requiring the giving of notices about the effect of this subsection.

5 The Treasury may, by regulations, amend subsection (3)(za) to substitute a different date for the date for the time being specified there.