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Home / Simons-Taxes /Personal and employment tax /Part E3 Reliefs for investors /Division E3.1 Enterprise investment scheme /Requirements relating to shares / E3.118 Maximum limits to risk finance investments (known as relevant investments)
Commentary

E3.118 Maximum limits to risk finance investments (known as relevant investments)

Personal and employment tax

One of the conditions imposed on shares if they are to attract EIS relief for an investor, is to place limits on the amount of capital a company can raise through risk finance investments: ie EIS, VCS (see E3.201), SEIS (see E3.801) and SITR (see E3.901).

There is an annual limit, a limit applying at the time EIS shares are issued and a limit applying during period B (see E3.104). All these limits apply to 'relevant investments', made in a rolling 12 month period. Each of these are considered below.

Annual limit to relevant investments

The total amount of relevant investments (see below) made in the issuing company in the year ending on the date the relevant shares are issued is limited to1:

  1. Ìý

    •ÌýÌýÌýÌý £10m for a company that is a KIC (Knowledge Intensive Company) at the date of issue (see E3.137), or

  2. Ìý

    •ÌýÌýÌýÌý £5m in any other case

12 month period to which annual limit applies

The period of

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Web page updated on 17 Mar 2025 17:11