Part 5Enterprise investment scheme

Chapter 2The investor

The requirements

164The no linked loans requirement

1

No linked loan is to be made by any person, at any time in period A, to the investor or an associate of the investor.

2

In this section “linked loan” means any loan which—

a

would not have been made, or

b

would not have been made on the same terms,

if the investor had not subscribed for the relevant shares, or had not been proposing to do so.

3

References in this section to the making by any person of a loan to the investor or an associate of the investor include references—

a

to the giving by that person of any credit to the investor or any associate of the investor, and

b

to the assignment to that person of a debt due from the investor or any associate of the investor.