VCM21510 - EIS: general: investment funds: approval of

ICTA/S311 (2A); ITA/S251

The managers of an investment fund may, if they wish, apply for the fund to be approved by HMRC. Approval carries certain limited advantages, which apply in relation to income tax relief only. They are that:

• the £500 minimum subscription (see VCM25420) does not apply,
• provided 90% of the fund is invested within 12 months after the date when the invitation to participate in the fund closes, (6 months for funds which closed before 6 October 2006) the shares are regarded as issued on that date.

Anyone wishing to enquire about the circumstances in which approval may be given should contact CT&VAT (Technical), either in writing to Room 3C/35, 100 Parliament Street, London, SW1A 2BQ or by telephone on 020-7147-2589 or 020-7147-0818.