HMRC internal manual

Venture Capital Schemes Manual

EIS: income tax relief: general requirements: overview

You should check the other guidance available on GOV.UK from HMRC as Brexit updates to those pages are being prioritised before manuals.


As well as the investor requirements (see VCM11000+) and issuing company requirements (see VCM13000+) there are general requirements relating to the investment and how it is used. Chapter 3 of ITA07/Part 5 sets out the requirements to be met as to:

  • the shares (see VCM12020),
  • the maximum amount raised annually (see VCM12030),
  • the spending of any previously raised SEIS money (see VCM12040)
  • the purpose of the issue of shares (see VCM12050),
  • the use of the money raised (see VCM12060) (see VCM12110 for the meaning of ‘qualifying business activity’),
  • the minimum period (see VCM12070),
  • no pre-arranged exits (see VCM12080),
  • no tax avoidance (see VCM12090), and
  • no disqualifying arrangements (see VCM12100).