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E3.905 Eligibility criteria for SI relief—the investment

Note that this scheme closed to new investment from 6 April 2023 onwards.

The following conditions apply to the investment in a social enterprise:

1. Ìý

   •ÌýÌýÌýÌý the investment must be in new shares or new qualifying debt investments;

2. Ìý

   •ÌýÌýÌýÌý the amount invested must have been paid over;

3. Ìý

   •ÌýÌýÌýÌý there must be no pre-arranged exit from the investment;

4. Ìý

   •ÌýÌýÌýÌý there must be no arrangements in place to protect the investor against risk;

5. Ìý

   •ÌýÌýÌýÌý there must be no loan to the investor that is linked to the investment;

6. Ìý

   •ÌýÌýÌýÌý tax avoidance must not be the main purpose or one of the main purposes of the arrangements under which the investment is made.

7. Ìý

   •ÌýÌýÌýÌý the investment must not be made or used by the social enterprise in connection with 'disqualifying arrangements' (as defined).

Each of these seven criteria is examined below.