Commentary

E3.102 Eligibility for EIS income tax relief and the general risk to capital condition

Personal and employment tax

E3.102 Eligibility for EIS income tax relief and the general risk to capital condition

E3.102 Eligibility for EIS income tax relief and the general risk to capital condition

The conditions governing a qualifying investor's eligibility for EIS have been added to over the years, so that it is now dependent on six conditions, the most recent of which is the risk-to-capital condition, which applies from 15 March 20181. In summary, the conditions are such that2:

  1.  

    •     the risk-to-capital condition is met (see below), and

  2.  

    •     the shares are issued before the end of the EIS scheme, ie before 6 April 2025, and

  3.  

    •     the investor is a qualifying investor (see E3.106), and

  4.  

    •     the relevant shares are issued to the qualifying investor (see E3.117), and

  5.  

    •     the issuing company is a qualifying company (see E3.126),

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