SCHEDULES

SCHEDULE 13 Changes to EISetc

Part IEIS income tax relief

Connected persons: persons interested in capital etc.

8

1

After subsection (5) of section 291B of the Taxes Act 1988 there shall be inserted the following subsection—

5A

An individual is not connected with a company by reason only of the fact that one or more shares in the company are held by him, or by an associate of his, at a time when the company—

a

has not issued any shares other than subscriber shares; and

b

has not begun to carry on, or to make preparations for carrying on, any trade or business.

2

For subsection (6) of that section there shall be substituted the following subsection—

6

In this section “subsidiary”, in relation to the issuing company, means a company which at any time in the relevant period is a 51 per cent. subsidiary of the issuing company, whether or not it is such a subsidiary while the individual concerned has, or is entitled to acquire, such capital, voting power, rights or control as are mentioned in this section.