Summary:
Four investors each looking to invest £40k for a newco issue of shares. Money will be used to purchase a property, from which a restaurant will be run. The property will form at least 80% of the assets of the trade. There will be no accomodation available for visitors to the restaurant and all other conditions of EIS are met.
Thoughts:
On the basis of the disapplication of the 50% 'interests in land rule' at S295 ICTA 88 from 29.11.94 and by virtue of the fact that a restaurant does not appear in the excluded trade at S297 ICTA 88, I would suggest that there is no issue.
Do you agree and have you experience of succeeding with such claims. I have heard that public houses are successful for the same reasons.
Experience of successful restaurant claims for EIS are most welcome, even if just a 'yes, we did it!'
Simon Laskey
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Replies (2)
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Hurrah!
Thanks for that comment. Having just completed my 5 page letter to the client with a 'yes' conclusion, I am relieved that my time was not wasted!
Yes we did it!
The circumstances were very similar. On submission of the relevant details and following a query from the Revenue there was no doubt about the nature of the trade of the company or how the funds invested were to be applied. It was however agreed that the new company trading as a restuarant was qualifing.