Non-EIS and EIS shares

Are associates relevant for this situation?

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A husband and wife each own EIS shares in company.  The wife has the option to acquire some non-EIS shares in the same company.

Legislation at s.164A ITA 2007 states that once you acquire non-EIS shares you cannot accquire any further EIS shares.

The odd thing is, I was expecting to see associates included in all of this, but they are not mentioned in the legilsation?  Doesn't this mean that if the wife takes the non-EIS shares, the husbnad could just continue to subscribe for EIS shares and if needed, transfer some to his wife.

Obviously, this arrangement would only fit certain conditions/situations, but it's the principle I'm looking to confirm.  Most EIS unfriendly bits of the legislation include associates too, but this one doesn't seem to.

Has anyone seen this in practice before, or had dealings with HMRC on this sort of thing?

 

 

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