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E3.106 The basic requirements of being a qualifying investor for EIS

An investor is eligible for EIS relief if he or she subscribes for relevant shares (see E3.116) in a qualifying company (see E3.126) and four basic requirements are satisfied. These conditions are that¹:

1. Ìý

   •ÌýÌýÌýÌý the individual must not be connected with the issuing company at any time in Period A (see E3.104)², and

2. Ìý

   •ÌýÌýÌýÌý there are no linked loans made to the investor or to an associate of the investor at any time in Period A³, and

3. Ìý

   •ÌýÌýÌýÌý with respect to shares issued on or after 18 November 2015, existing shareholdings held by the investor must be risk finance investments or subscriber shares, and

4. Ìý

   •ÌýÌýÌýÌý the subscription must not be made as part of a tax-avoidance scheme

The Treasury has the power to amend any of these provisions as it considers appropriate⁴.