188体育

ITA07/S164A

An individual who claims Income Tax relief under the EIS must be independent from the company and hold no other shares in the company at the time the individual invests in the company. The only exception is if the existing shares are a risk finance investment or the shares are 鈥榮ubscriber shares鈥� and:

• the individual holds shares in the company, all of which were issued to the individual when the company was founded; or
• the shares were acquired when a pre-formed dormant company was bought 鈥榦ff the shelf鈥�.

The same rules apply to shareholdings of the individual in companies that are members of the same group as the issuing company at the time the shares are issued.

A 鈥渞isk finance investment鈥� is a share or shares subscribed for under the EIS, the SEIS or the Social Investment Tax Relief (SITR) rules, for which the company submits a compliance statement to HM Revenue & Customs under ITA07/S205, 257ED or 257PB respectively.

Note that this definition is more limited than a 鈥渞elevant investment鈥� under ITA07/S173A, which includes loans made under SITR.