EIS is intended to benefit small and medium-sized businesses, and therefore upper limits are set on the size of the company in relation to its gross assets. If the company exceeds these limits then it is not a qualifying company and a investor will not be eligible for EIS relief.
The limits apply in relation to the value of the assets held by the company immediately pre and post issue of the relevant shares (see E3.117). The pre-investment gross-assets threshold is £15m and the post-investment threshold at £16m1.
In the case of a single company the value relates to the company's assets, and in the case of a parent company it relates to group assets2.
Where the company has qualifying subsidiaries, the limits stated above are those for the company and all its qualifying subsidiaries, ignoring intra-group holdings and obligations3.
The Treasury has the power to amend these provisions as it considers appropriate4.
Valuation of gross assets to assess if limits have been exceeded
The value of
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Web page updated on 17 Mar 2025 15:46