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Where Taxpayers and Advisers Meet

EIS scheme

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Posts:351
Joined:Thu Feb 23, 2012 10:26 am
EIS scheme

Postby Feedback » Wed Apr 20, 2016 4:36 pm

topco is owned by Mr A and Mr B in equal share. sideco is owned by Mr A, Mr B, Mr C and Mr D in equal share. neither is trading but have been developing the same product to take to market.

if topco has various share issues and one of those share issues is that sideco is acquired by topco on a like for like share basis (sideco has 100 paid up shares and topco acquires those shares by issuing 100 shares to Mr A, Mr B, Mr C and Mr D in equal proportion), does this preclude the company from being granted EIS status (assume it has now been trading for 4 months).

In other words, rather than incorporating a new company to act as a trading company, topco and sideco were reorganised to achieve the same aim.

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