Income Tax Act 2007 section 257DK

No previous other risk capital scheme investments

Section 257DK requires that neither the issuing company nor any of its qualifying subsidiaries has previously received investment under the Enterprise Investment Scheme (EIS) or from a Venture Capital Trust (VCT).

• No EIS or VCT investment may have been made in the issuing company on or before the date the relevant shares are issued
• No EIS or VCT investment may have been made in any company that is a qualifying subsidiary of the issuing company at the time the relevant shares are issued
• An EIS investment occurs when a company issues shares for subscribed money and provides a compliance statement under section 205 — the investment is treated as made when the shares are issued
• A VCT investment occurs when a Venture Capital Trust makes an investment of any kind in the company