VCM12090 - The investment process: employment of money: time limit for

ICTA/S289 (3); ITA/S175; TCGA92/SCH5B/PARA1 (2)(g); FA00/SCH15/PARA36

For the EIS and the CVS, the time limit within which the money raised by the issue of the shares, and of all other shares of the same class issued on the same day, must be employed is as follows:

• at least 80% of it must be employed within 12 months after the date of issue, except where the activity consists of preparing to carry on a trade, in which case the time limit is 12 months after the date when the trade begins;
• any money remaining must be employed within the following 12 months.

Where a company submits form EIS1 or form CVS1 before either of the time limits for employment of the money has expired, and not enough money has as yet been employed to satisfy the statutory conditions, it is required to make a declaration on the form that the conditions will be complied with.

For the VCT scheme, see VCM62150.