VCM25110 - Enterprise Investment Scheme (EIS): Income Tax relief: Connection with the company: “Entitled to acquire”

ICTA/S291B (8); ITA/S170 (9)

For the purpose of VCM25100 individuals are regarded as entitled to acquire something if they are able to acquire it by virtue of a contractual right or through some other arrangement. They might for example hold an option which entitles them to require a shareholder to transfer shares to them. References to being “entitled to acquire” something apply both where individuals are presently entitled to acquire it at a future date, and where they will at a future date be entitled to acquire it.

Note that an individual who is entitled to require a company to issue to him share capital that is as yet unissued is not “entitled to acquire issued share capital”.