EIS Tax relief - do I qualify?
Posted: April 29th, 2022, 11:54 am
Not sure if this is the right board or whether I should be using the tax board, but will post a link.
My daughter is invovled in a company that is undergoing fund raising and the company will qualify for EIS (not SEIS). A venture capital company is putting in £500k and following this the company will be valued at £4m. At this point my daughter will own slightly under 29% of the shares. I would like to put in some money as well but am cognisant of the connected persons rules that may prevent me from obtaining EIS relief, according to the guidance page here:
https://www.gov.uk/guidance/venture-cap ... -investors
Prior to the raise my daughter will hold more than 30% of the shares, so does that meant that if I put money in at the same time as the venture capital company I will not qualify for EIS relief?
If I put money in after the VC company have been issued their shares and my daughter diluted to below 30%, will I then qualify for EIS or will the HMRC see this as all part of the same funding round?
If I can put money in post VC, how much can I put in? ie if the amount I put in raises the total of my daughter's shares and mine back above 30%, would I be unable to claim EIS relief?
Any pointers on this would be very welcome.
My daughter is invovled in a company that is undergoing fund raising and the company will qualify for EIS (not SEIS). A venture capital company is putting in £500k and following this the company will be valued at £4m. At this point my daughter will own slightly under 29% of the shares. I would like to put in some money as well but am cognisant of the connected persons rules that may prevent me from obtaining EIS relief, according to the guidance page here:
https://www.gov.uk/guidance/venture-cap ... -investors
Prior to the raise my daughter will hold more than 30% of the shares, so does that meant that if I put money in at the same time as the venture capital company I will not qualify for EIS relief?
If I put money in after the VC company have been issued their shares and my daughter diluted to below 30%, will I then qualify for EIS or will the HMRC see this as all part of the same funding round?
If I can put money in post VC, how much can I put in? ie if the amount I put in raises the total of my daughter's shares and mine back above 30%, would I be unable to claim EIS relief?
Any pointers on this would be very welcome.