Business investment relief

Business investment relief

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If a client has invested in an EIS fund and received an EIS5, does/could this qualify as an eligible stakeholder company for the purposes of Business Investment Relief?  I imagine the answer is "it depends" but I don't have a great deal more information at this point and don't want to flog a dead horse if the answer is a flat "no".

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By bajones
20th Jan 2016 16:44

Thanks..

Thank you, I do find your guides excellent for overviews.  It was the eligible stakeholder company bit I was struggling with rather than the principles.  On reflection, there is no chance that an EIS fund can be, as an investment in one is neither a loan nor shares in the company managing the fund.

My logic was that it seemed odd to me for an investment in an EIS company where the taxpayer is in receipt of an EIS3 to qualify, but an investment in an EIS fund where an EIS5 is held to not (at least in its entirety).  I suppose my error was looking at the monies going into the fund being the investment, rather than the underlying investments made by the fund.

I assume the EIS fund must be scrutinised to see which of its investments qualify for BIR (most problematic being the 45 day rule), rather than just take the figures invested.  Oh well.

 

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