VCM32040 | SEIS: income tax relief: the investor: no related investment arrangements

ITA07/S257BC

An investor will not qualify for SEIS relief if he has subscribed for the shares as part of a reciprocal arrangement which involves somebody else subscribing for shares in a company in which the investor has a substantial interest in return for the investor subscribing in a company in which the other person has a substantial interest. The legislation is drafted in such a way as to disqualify shares issued under arrangements involving multiple investors and multiple companies. (See VCM32030 for meaning of ‘substantial interest’.)