VCM25030 - EIS: income tax relief: identity of the investor

ICTA/S291 (1); ITA/S157 (1); ICTA/S311 (1) & (2); ITA/S250

To be eligible for income tax relief the investor must be an individual. To qualify for that relief that individual must make the subscription on his or her own behalf. Thus relief cannot be claimed by an individual subscribing in the capacity of a nominee or a trustee.

However, there are two exceptions to these principles. First, individuals who use another person as a nominee to subscribe for the shares, or be registered as the holder of them, on their behalf, are treated as themselves being the subscriber - see VCM25460. Secondly, where a joint subscription is made, with the result that the subscribers are in law acting as bare trustees (whether for themselves or for others), the beneficiaries are treated as being the subscribers - see VCM25460.