EIS: income tax relief: the investor: overview
Chapter 2 of Part 5 deals with the requirements relating to the investor. There are three main requirements:
* The investor must have no ‘connection’ with the issuing company (see [VCM11020](https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm11020)), * The investor or any associate must not have received a loan which would not have been made, or would not have been made on the same terms, were it not for the EIS investment (see [VCM11030](https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm11030)), and * The investor must have subscribed for the shares for genuine commercial reasons and not as a part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax (see [VCM11040](https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm11040)).
Guidance on the meaning of ‘connection’ is at VCM11050 to VCM11090.
See VCM11100 for the meaning of ‘associate’.