VCM25020 - EIS: income tax relief: introduction

ICTA/S289 (1); ITA/S157

The EIS makes relief from income tax available to individuals in certain circumstances. The basic rule is that an individual is eligible for the relief if he or she subscribes in cash for full- risk ordinary shares (see VCM12010) in a qualifying company (see VCM15010) and:

• the individual qualifies for relief (see VCM25040),
• the shares subscribed for are duly issued to the individual, and
• certain conditions relating to the way the company raises and uses the money, explained at VCM12060 - VCM12100, are satisfied.

This basic rule is extended and restricted in various circumstances. See VCM25030 regarding the identity of the investor, and VCM25300 regarding certain situations in which an individual cannot be eligible for relief.