VCM12010 - EIS: income tax relief: general requirements: overview

ITA07/S172

As well as the investor requirements (see VCM11000+) and issuing company requirements (see VCM13000+) there are general requirements relating to the investment and how it is used. Chapter 3 of ITA07/Part 5 sets out the requirements to be met as to:

• the shares (see VCM12020),
• the maximum amount raised annually (see VCM12030),
• the spending of any previously raised SEIS money (see VCM12040)
• the purpose of the issue of shares (see VCM12050),
• the use of the money raised (see VCM12060) (see VCM12110 for the meaning of ‘qualifying business activity’),
• the minimum period (see VCM12070),
• no pre-arranged exits (see VCM12080),
• no tax avoidance (see VCM12090), and
• no disqualifying arrangements (see VCM12100).