EIS is intended to assist companies in the early stages of growth and development, by encouraging investment in companies that may need several rounds of tax-advantaged funding before the market will invest in them, and companies whose activities are changing so substantially as to constitute a new business activity1. Therefore one of the conditions relating to shares issued under EIS relates to the age of the issuing company at the issue date of the shares.
The initial investment period
A company will meet the age requirement, if a relevant investment (see E3.118) is made before the end of its initial investing period2.
The initial investing period starts from the date of the first relevant commercial sale (see below) and is the period of3:
- Ìý
•ÌýÌýÌýÌý seven years, or
- Ìý
•ÌýÌýÌýÌý ten years for a company that is a KIC (Knowledge Intensive Company) at the issue date (see E3.137)
Alternatively a KIC can elect to have an initial investing period of ten
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 13:43