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EIS General Requirements – Introduction & Background In addition to the specific requirements set out for the shares, the Company and the investor, there are also General Requirements that must be satisfied… The EIS General Requirements can be summarised as follows: Funds raised must be employed for qualifying business activity The funds raised under EIS […]

EIS Rules Overview – EIS Qualifying Company In overview, the investee Company must satisfy the following requirements: Qualifying Trading Company The first point is that the company must conduct a qualifying trade. The test is that it must conduct an activity that actually is, or is treated for all purposes of the Taxes Acts as, […]

EIS Shares – Conditions, Investors, Businesses & Individuals Overview – EIS relief In order to qualify for EIS relief, the shares issued under the capital raise must be ‘qualifying shares’. In overview, the following must be satisfied for the shares to be ‘qualifying shares’: These conditions must be satisfied on issue and for the relevant […]

Introduction – EIS Risk to capital condition – Example & HMRC The Risk to Capital Condition was introduced in March 2018. As well as being a new concept to the Seed EIS /EIS checklist, it is a somewhat subjective condition. Any new application after March 2018 will have to pass this condition. So, it must […]

Enterprise Investment Scheme (EIS) – Introduction & EIS Relief Background The Enterprise Investment Scheme (“EIS”) is a venture capital relief. It is designed to provide investors in smaller, growth companies with attractive tax incentives where they invest in qualifying shares and meet a myriad of other conditions and requirements. Overview of EIS Reliefs The reliefs […]

An overview of the Enterprise Investment Scheme The Enterprise Investment Scheme has proved a valuable tax relief both for those entitled to the relief on their investment and the improved attractiveness afforded to qualifying companies in generating equity investments. The Enterprise Investment Scheme forms part of a number of tax relieved schemes under the heading […]

EIS & SEIS Schemes – A Gatekeeper named Risk A new principles-based test has been introduced by the Finance Act 2018 which imposes a ‘risk-to-capital’ gateway condition. The condition is designed to ensure that the schemes focus investment in companies with genuine intentions for long-term growth and development, as opposed to companies which exploit the […]