Q&As

Can shares acquired under an Advanced Subscription Agreement still qualify for venture capital trust (VCT) relief?

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Published by a LexisNexis Tax expert
Published on: 04 October 2018
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An Advanced Subscription Agreement (ASA) is an agreement:

  1. •

    between an investor and a company

  2. •

    for the investor to pre-pay for shares that are to be allotted and issued by the company in a subsequent funding round, and

  3. •

    usually on terms that provide the investor with a discount to the price paid by other investors at the subsequent funding

Such agreements are commonly used to enable early stage companies to secure early funding

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United Kingdom

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