The issuing company must meet certain conditions for SEIS relief to be available to the investor (see E3.825). One of these requirements is the trading requirement.
The trading requirement requires that the issuing company, ignoring any incidental purposes, exist wholly for the purpose of carrying on a 'new qualifying trade, or trades, (see below) throughout period B (see E3.801)1. Alternatively if it is the parent company of a group, the business of the group must not be a substantial part of the carrying on of non-qualifying activities2.
Where period B begins after the incorporation of the company, the trading requirement must have been complied with since its incorporation. although any interval between the incorporation of the company and the time when it commenced business is to be ignored3.
If a company intends in the future to have qualifying subsidiaries which will carry on new qualifying trades, then it is treated as a parent company for the purposes of the trading requirement. The group will then include the company and any
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