VCM25460 - EIS: income tax relief: claiming relief: person entitled

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

The relief is available to individuals who subscribe for shares on their own behalf. It is also available to an individual for whom some other person is acting as nominee. A common example of this is where an individual contributes to an investment fund and the fund manager, or a nominee company employed by the fund manager for the purpose, subscribes for shares on behalf of the participators in the fund. The company, which may or may not know who the beneficial owner is to be, should enter the name of the actual subscriber on the form EIS3.

Relief is also available in the case of joint subscriptions. But where shares are held jointly it is provided that each of the owners is to be treated as having subscribed an equal amount in respect of those shares . Thus if spouses or civil partners subscribe £5000 for 5000 shares and the shares are registered in their joint names they are each treated as having subscribed £2500 for 5000 shares and each is entitled to relief on £2500. This is the case even if all of the funds were provided by one of them.