EIS: income tax relief: company and investor procedures: investor claims: conditions
An investor who wishes to claim relief in respect of a subscription may do so where the following conditions are satisfied:
- the investor must have received from the company form EIS3, which certifies that the company has not, so far, breached any of the conditions for being a qualifying company,
- the investor must not, by the date of the claim, have breached any of the conditions for being a qualifying individual eligible for relief in respect of the shares,
- the company must have carried on the trade (or research and development) for which the money was raised for 4 months, except where it was unable to do so by reason of having gone into receivership or liquidation. (In practice, the investor will not receive form EIS3 until this condition is satisfied.)
If the subscription was made through an Approved Investment Fund (VCM16050), the investor will not receive forms EIS3, but a form EIS5 from the fund manager showing all the investment made through the fund.
A claim cannot be made more than 5 years after the 31 January following the tax year in which the shares were issued. Note: this is longer than the time limit allowed for most other claims. This is to allow for the fact that before the investor can claim, the company must first have been in a position to submit its compliance statement and to have had it accepted by HMRC. See VCM14090 for the time limits for a company submitting a compliance statement.