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Home / Simons-Taxes /Personal and employment tax /Part E3 Reliefs for investors /Division E3.1 Enterprise investment scheme /EIS income tax relief—overview / E3.102 Eligibility for EIS income tax relief and the general risk to capital condition
Commentary

E3.102 Eligibility for EIS income tax relief and the general risk to capital condition


Personal and employment tax

The conditions governing a qualifying investor's eligibility for the enterprise investment scheme (EIS) have been added to over the years, so that it is now dependent on six conditions, the most recent of which is the risk-to-capital condition, which applies from 15 March 20181.

In summary, the conditions are such that2:

  1. Ìý

    •ÌýÌýÌýÌý the risk-to-capital condition is met (see below)

  2. Ìý

    •ÌýÌýÌýÌý the shares are issued before the end of the EIS scheme, ie before 6 April 20353

  3. Ìý

    •ÌýÌýÌýÌý the investor is a qualifying investor (see E3.106)

  4. Ìý

    •ÌýÌýÌýÌý the relevant shares are issued to the qualifying investor (see E3.117)

  5. Ìý

    •ÌýÌýÌýÌý the issuing company is a qualifying company (see E3.126), and

  6. Ìý

    •ÌýÌýÌýÌý the general requirements are met in respect of the purpose and use of funds raised (see E3.141)

The risk to capital condition

The risk to capital condition is general in nature in that it applies to the overall purpose

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Web page updated on 17 Mar 2025 17:42