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Home / Simons-Taxes /Personal and employment tax /Part E3 Reliefs for investors /Division E3.1 Enterprise investment scheme /Qualifying companies / E3.130 The qualifying business activity requirement
Commentary

E3.130 The qualifying business activity requirement


Personal and employment tax

Eligibility for EIS relief requires that the issuing company must carry on a qualifying business activity1.

The purpose of the share issue (see E3.119) and the use of the funds raised (see E3.120) impose similar conditions that are relevant when examining whether or not the shares themselves meet the criteria for EIS.

The issuing company satisfies the qualifying business activity requirement so long as no other person, other than the issuing company or a qualifying 90% subsidiary, do any of the following, throughout period B (see E3.104)2:

  1. Ìý

    •ÌýÌýÌýÌý relevant qualifying trade (see E3.142)

  2. Ìý

    •ÌýÌýÌýÌý relevant preparation work

  3. Ìý

    •ÌýÌýÌýÌý relevant research and development (see E3.143)

    TermDefinition
    Relevant qualifying tradeThis is that trade

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