Part 5

Enterprise investment scheme
Chapter 2

The investor

The requirements

The existing shareholdings requirement
164A
1
If, at the time the relevant shares are issued, the investor holds any other shares in a company within subsection (2) (“C”), those other shares must be—
a
a risk finance investment, or
b
subscriber shares which—
i
were issued to, and have since they were issued been continuously held by, the investor, or
ii
were acquired by the investor at a time when C had not issued any shares other than subscriber shares and had not begun to carry on or make preparations for carrying on any trade or business.
2
The companies referred to in subsection (1) are—
a
the issuing company, and
b
any company which is a qualifying subsidiary of the issuing company at the time the relevant shares are issued.
3
Shares in a company are a “risk finance investment” if—
a
they are issued by the company to the investor, and
b
(at any time) the company provides a compliance statement under section 205, 257ED or 257PB in respect of the issue of shares which includes those shares.
S. 164A inserted (with effect in accordance with Sch. 5 para. 23 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 5 para. 4