To be an EIS qualifying investor, the Investor must:
- Not be an employee of an Investee Company or a Qualifying Subsidiary;
- Not be the recipient of a loan which would not have been made or would have been made on different terms if the investor had not subscribed for the shares;
- Not have a substantial interest in the Investee Company at any time from the company’s incorporation nor within three years of the Investment in that company. A substantial interest includes the Investor directly or indirectly possessing a 30% shareholding in the Investee Company or its subsidiaries, or the ability to control 30% of the votes in the Investee Company.
- Be subscribing for shares in the Investee Company through the Fund for genuine commercial reasons and not as part of a scheme or arrangement whose main purpose is to avoid tax.