About to invest in a LTD company

by **mailsamd** on Sat Aug 29, 2009 9:04 pm

Hi,

I am about to invest some money in a LTD company through purchase of normal stock, a couple of questions.

1. The shares are from the founder and will be transferred to me, the company has previously issued new shares under EIS thus could I somehow claim EIS relief on these?

2. What official HRMC / Companies House document will officially have my name as a shareholder and should I expect to relive a copy as confirmation of my investment? (appreciate not a tax question but hoping someone could help)

Thanks
Samantha

by **RAL** on Sun Aug 30, 2009 11:52 am

mailsamd wrote:Hi,

I am about to invest some money in a LTD company through purchase of normal stock, a couple of questions.

1. The shares are from the founder and will be transferred to me, the company has previously issued new shares under EIS thus could I somehow claim EIS relief on these?

I am afraid the answer is NO. EIS's one of the condition is to subscribe to new shares. Also the previous owner would have claim income tax relief on thes EIS shares. So, no you cannot claim EIS relief on these. However, incase if this investment fails and the share become negligible value, you may be able to claim the loss against the income or capital gain tax. But for this you have to make sure this investment meets the requirements.

mailsamd wrote:2. What official HRMC / Companies House document will officially have my name as a shareholder and should I expect to relive a copy as confirmation of my investment? (appreciate not a tax question but hoping someone could help)

Once the shares transferred to your name, the compay has to file file share holders details with companies house. And if applicable, the change in shareholding details will be disclosed as a notes to the accounts.

by **mailsamd** on Mon Aug 31, 2009 8:33 pm

RAL wrote:
mailsamd wrote:Hi,

I am about to invest some money in a LTD company through purchase of normal stock, a couple of questions.

1. The shares are from the founder and will be transferred to me, the company has previously issued new shares under EIS thus could I somehow claim EIS relief on these?

I am afraid the answer is NO. EIS's one of the condition is to subscribe to new shares. Also the previous owner would have claim income tax relief on thes EIS shares. So, no you cannot claim EIS relief on these. However, incase if this investment fails and the share become negligible value, you may be able to claim the loss against the income or capital gain tax. But for this you have to make sure this investment meets the requirements.

mailsamd wrote:2. What official HRMC / Companies House document will officially have my name as a shareholder and should I expect to relive a copy as confirmation of my investment? (appreciate not a tax question but hoping someone could help)

Once the shares transferred to your name, the compay has to file file share holders details with companies house. And if applicable, the change in shareholding details will be disclosed as a notes to the accounts.

Thanks Ral