VCM12050 - The investment process: subscription in cash

ICTA/S289 (1); ITA/S173; ITA/S174; ITA/S293

TCGA92/SCH5B/PARA1 (2)(a); FA00/SCH15/PARA35

For EIS, the reliefs are available where the investor subscribes for and is issued with shares, whether in person or through a nominee.

The subscription price must be paid wholly in cash (which includes payment by cheque and payment in foreign currency), and the cash must be paid in full by the time the shares are issued.

There is a separate condition that the shares must be issued to raise money (see VCM12060). We regard cash and money as meaning the same thing in this context.

The CVS has the same condition that the subscription must be in cash and must be fully paid. But the VCT scheme requires only that the issue raises money (see VCM62150).