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VCT share-for-share exchanges

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The Venture Capital Trust (Exchange of Shares and Securities) (Amendment) Regulations, SI 2018/109, specify conditions in which VCTs can exchange shares or securities for new shares or securities in the course of company reconstructions without losing approved status, provided the new non-qualifying shares or securities are held for a limited period only (broadly, 12 months for shares and 18 months for securities). HM Treasury consulted during December and January on a draft version, following which the relevant time limits have been doubled in the final regulations. The regulations come into force on 22 February 2018.