Hi all
I'm wondering if anyone can clarify an aspect of EIS elibility....
A company cannot apply for EIS status for any new equity investment if the company is controlled (51%) by a Ltd company (parent).
Would the same company be ineligible if its shareholders were say 50% Ltd company (parent) and 21% individual (but the individuals were also the same shareholder of the Ltd company (parent)?) the remaining 29% would be new investment.
Interested in any viewpoints on this.
Many thanks
Replies
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I haven't checked the legislation but I think the tense in your question is correct: "is controlled". Unless my maths fails me, the same company is owned just over 70% by the parent and just under 30% by the individuals. Thus it "is controlled".
I know, I think I am grasping at straws....I'm intrigued to understand if the same principle applies to a 5% Ltd company and 65% individual shareholders and 30% third party?
and do we get to a similar 'is controlled' conclusion if there was no company in the mix at all?
Did you read your own OP?
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