Taxes Consolidation Act 1997 section 499

Anti-avoidance: qualifying investment (investor perspective)

Section 499 sets out the circumstances in which an investment by an individual will not be treated as a qualifying investment for the purposes of the Employment Investment Incentive Scheme (EIIS).

• An investment is not a qualifying investment where the company or any of its qualifying subsidiaries takes over a business previously carried on by someone else, or acquires the whole or greater part of the assets of such a business, at any time during the compliance period.
• The disqualification applies where the individual (alone or with others) held more than a 50 per cent interest in the previous business, or is a person (or one of a group) who controls the company and who also controlled the company that previously carried on the business.
• An individual is also denied relief where the company acquires all of the issued share capital of another company during the compliance period, and the individual is a person (or one of a group) who controls or controlled both companies.
• Ownership interests in a business are determined by reference to section 400, and the interests, rights or powers of a person's associates are treated as belonging to that person.