GF007: What percentage share capital can I own under SEIS / EIS?
This is a thorny subject that comes up time and time again:
How much of the share capital can I or my investors own under SEIS / EIS?
In this seventh episode of the Get Funded! podcast we cover the (dreaded) “substantial interest” test that basically says that you can’t hold more than 30% of the issued share capital and qualify for SEIS / EIS.
I say “dreaded” because it is not just you or your investor that you need to consider but also any “associates” too. “Associates” include spouses plus parents, children, grand-parents etc (basically blood relations up and down). Brothers and sisters are not counted as “associates”.
Many startup companies get tripped up by this rule so watch out for it!
This episode was brought to you by ip tax solutions – specialists in R&D tax credits