Knowledge intensive companies: overview
ITA07/S252A (for EIS)
ITA07/S331A and section 297B (for VCTs)
There are higher limits for companies that meet the conditions for a knowledge-intensive company than other companies:
- The number of full time equivalent employees must be less than 500 (instead of 250)
- The total investment limit is £20 million (instead of £12 million)
- The basic age limit (condition A) by which the initial relevant investment must be made is 10 years after the company’s first commercial sale (instead of 7 years).
To be a knowledge-intensive company, at the time of the investment the company must meet
- at least one of the two operating costs conditions and
- at least one of the innovation condition and the skilled employees condition
Where a company is a knowledge-intensive company because it depends upon meeting the skilled employees condition, it must continue to meet that condition for at least 3 years following the date the investment was made.