VCM25440 - EIS: income tax relief: investments made through an approved investment fund

ICTA/S311 (2B); ITA/S251

If the investment is made through the medium of an approved investment fund (see VCM21510):

• the £500 minimum investment requirement (see VCM25420) does not apply, and
• provided 90% of the money contributed to the fund is invested within 12 months after the date the fund closes (6 months for funds which closed before 6 October 2006), the date when the investment is made is treated, for the purpose of the claim to income tax relief, as being the date when the fund closed. This will always be earlier than the actual investments, and may in some cases be in a previous tax year.

The option to treat part of the investment as having been issued in the previous year (see VCM25480) is available to investors through approved investment funds where the closing date of the fund is before 6 October in any year.