Finance Bill Briefs - VCT merger move.
The government has agreed to discuss proposals to allow Venture Capital Trusts to merge without becoming disqualified. Economic secretary Melanie Johnson – who made it clear she would not prejudice the outcome – made the offer in response to an amendment from shadow Treasury minister Howard Flight. He said VCTs have been going for more than five years and there were commercial pressures for consolidations. He wanted to allow the assets of the target VCT to be deemed to have been made by the acquiring VCT – otherwise the merger would disqualify the acquirer.