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EIS follow on round - existing director/ investor

EIS follow on round

I have a question on follow on rounds of fundraising in an EIS qualified company.

If an investor subsequntly became a diretor after the first round of EIS fundraising, can they then participte in a follow on round ( it's more than 3 years later if that makes any difference which I don't think it does now) and still get the income tax or CGT benefits?

They are investing anyway, so its just a question of whether they get certificates issued to them.

 

Thanks for any insight.

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13th Mar 2018 21:50

They can't qualify if there is any connection to the company, which includes directorships, unless they are a Business Angel, in which case they can become a director but not receive any form of remuneration.

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By dmw2210
14th Mar 2018 08:36

They can be paid as long as its is reasonable and that is what is happening. I just wonder if that stops them from following on in a new round of investment?

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