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The term 'business angel' does not appear in the legislation, but is in common use in connection with EIS¹. The term refers to a person previously unconnected with a company, who is prepared to provide finance and expertise to that company. Such an investor may wish to be a director in the company in which they are investing, and receive remuneration for their services.

A paid director may still receive EIS relief on their equity investment subject to the following conditions:

1. Ìý

   •ÌýÌýÌýÌý the remuneration to which the director is entitled, must be reasonable remuneration for the director's services rendered (see below)², and

2. Ìý

   •ÌýÌýÌýÌý at the time of issue of relevant shares, the director must never have been connected with the issuing company, or³

3. Ìý

   •ÌýÌýÌýÌý at the time of issue of relevant shares, must never have been involved in the carrying on of the trade, business or profession (or part thereof) of the issuing company or a subsidiary, either on the individual's own account,