VCM32030 - SEIS: income tax relief: the investor: no substantial interest in the issuing company
ITA07/S257BB
In order to qualify for SEIS relief, an investor must not have a 鈥榮ubstantial interest鈥� in the company at any time from incorporation of the company to the termination date (period A - VCM31140)
ITA07/S257BF
鈥楽ubstantial interest鈥� is defined as the investor directly or indirectly possessing, or having an entitlement to acquire more than a 30 percent stake in the company via
- ordinary or issued share capital,
- voting power,
- rights on winding up, or
- as having control of the company (see below).
Shareholdings of associates are taken into account in arriving at the 30 percent figure. For the meaning of 鈥榓ssociate鈥� see VCM32020.
An individual is not regarded as having a substantial interest in a company for this purpose, if the company has issued only subscriber shares (that is, those issued as part of the procedures via which the company is registered at Companies鈥� House) and the company has not yet begun to carry on any trade or preparations for any trade. (ITA07/S257BF(5)).
鈥楥ontrol鈥� for this purpose uses the definition at ITA07/S995. That is, the power of any person by means of the holding or shares or voting power, or as a result of any powers conferred by a document regulating the company or any other company, that the affairs of the company are conducted in accordance with the person鈥檚 wishes.