Income Tax Act 2007 section 157

Eligibility for EIS relief

Section 157 sets out the conditions that must be satisfied for an individual investor to be eligible for income tax relief under the Enterprise Investment Scheme (EIS) when subscribing for shares in a company.

• To qualify for EIS relief, an investor must subscribe for shares in their own name, the shares must be issued before 6 April 2035, and the investment must meet the risk-to-capital condition
• The investor must be a "qualifying investor" in relation to the shares, meaning they satisfy the personal eligibility requirements set out in the legislation
• The share issue must meet general requirements concerning its purpose and the use of the money raised by the company
• The issuing company must itself be a "qualifying company," satisfying conditions relating to its size, activities, and structure