Introduction Details of the Schedule Part 1 of the Schedule Chapter 2
11.New section 257B is an overview of chapter 2 which contains the conditions which apply to the SEIS investor.
12.New section 257BA provides that neither SEIS investors nor their associates may be employees of the company or any qualifying subsidiary in period B (unless also a director).
13.New section 257BB provides that SEIS investors must not during Period A have a “substantial interest” in the company, defined at new section 257BF as having more than a 30 per cent stake in the company through ordinary or issued share capital, voting power or rights on winding up, or as having control of the company.
14.New section 257BC provides that SEIS investors must not subscribe for the shares as part of a wider arrangement which includes somebody else subscribing for shares in a company in which the investor – or anyone else party to the arrangement – has a substantial interest.
15.New section 257BD provides that during Period A there must be no loans to the investor or their associates which are linked to their subscription for shares.
16.New section 257BE requires the subscription for shares to be for genuine commercial reasons, and not as part of a tax avoidance arrangement.
17.New Section 257 BF defines when a person has a “substantial interest” in a company.