EIS: deferral relief: shares issued on or after 6 April 1998: meaning of qualifying payment
Qualifying payments are defined as:
- Payment of any remuneration, provided that the remuneration is reasonable in relation to the employee’s duties.
- Reimbursement of expenses incurred wholly, exclusively and necessarily as an employee.
- Payment of any interest which is at a reasonable commercial rate.
- Payment of normal dividends or other distributions.
- Payment for supply of goods which is not in excess of their market value.
- Payment for the acquisition of an asset which does not exceed its market value.
- Payment of rent which does not exceed a reasonable commercial rate.
- Payment of remuneration which is reasonable and necessary for services rendered, and which is taken into account in computing Case I or II profits of the business in question.
- Payment to discharge an ordinary trade debt, see VCM23330.