»Ê¹ÚÌåÓýapp

Chapter 2 of Part 5 deals with the requirements relating to the investor. »Ê¹ÚÌåÓýappre are three main requirements:

• »Ê¹ÚÌåÓýapp investor must have no ‘connectionâ€� with the issuing company (see VCM11020),
• »Ê¹ÚÌåÓýapp investor or any associate must not have received a loan which would not have been made, or would not have been made on the same terms, were it not for the EIS investment (see VCM11030), and
• »Ê¹ÚÌåÓýapp investor must have subscribed for the shares for genuine commercial reasons and not as a part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax (see VCM11040).

Guidance on the meaning of ‘connection� is at VCM11050 to VCM11090.

See VCM11100 for the meaning of ‘associate�.

See VCM14210 for the obligations imposed on investors to notify HMRC of certain events which should result in relief being reduced or withdrawn, and VCM15170 for HMRC’s powers to obtain information.