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ITA07/S288

Where a holding in a company includes securities (see VCM54090) the holding cannot be part of the VCT’s qualifying holdings if there are any arrangements which would guarantee the repayment of the securities by a third party (other than a subsidiary of the company) in the event of a default by the company.

Note that this rule prevents the whole of the holding in the company (including any shares) from qualifying. »Ê¹ÚÌåÓýappre is no provision for it to be divided into qualifying and non-qualifying parts.

This requirement did not apply for investments made before 6 April 2018, where the money used for the investment was originally raised before 2 July 1997 (see VCM55020).