This commentary has been updated based on FB 2020, asintroduced on 19 March 2020. The legislation is not yet enacted and is therefore subject to change.
An individual investor may obtain ‘EIS relief’ where an approved investment fund invests on his behalf in a number of qualifying companies. HMRC have full power to approve the investment and must be satisfied that the managers of the fund are reputable and capable of handling the necessary administration. Relief is granted when the fund closes rather than the date the share issue is made, provided 90% of the individual’s subscription has been invested within 12 months of the fund closure (ITA 2007, s. 251).