SEED EIS

[ltd101]

I am looking into starting a dentistry practice with my cousin & my brother (we would have sub 30% of equity each), looking at the govt publications i see no reason why using seed eis would not be an eligible trade but suspect I am missing something! One thing that confuses me is that we would need premises. Clearly I could buy the premises within the ltd but im guessing that this might impact the 'eligible trade' part. The guidance on hmrc website is not very thorough.

Has anyone got any links that would be worth reading up on eligibility dos and donts? tks

[LozaACCS]

I think you may have an issue with the no substantial interest requirement.
Although your brother and cousin are not within the definition of a relative at S253 ITA 2007, they may be regarded as business partners, the overall investment would therefore be a controlling interest in excess of 30%.
Notwithstanding the above the no employee investor requirement would mean you would all have to be directors.

[ltd101]

Tks very much Loza. So you also concur that it is an eligible trade for seed eis? I think we will each have 29%. My next worry as how the commercial premises work as seed eis does not like property related structures