Taxes Consolidation Act 1997 section 600H

Qualifying investor

Section 600H defines the term "qualifying investor" for the purposes of angel investor relief and sets out the circumstances in which an individual will be regarded as connected with a company.

• A qualifying investor is an individual who subscribes on their own behalf for eligible shares in a qualifying company and is not connected with the company at the date of investment.
• An individual is connected with a company if the individual, or an associate of the individual, is a partner, director or employee of the company or any member of its relief group, or has an interest in the capital of any such company.
• An interest in the capital of a company includes owning or having rights to acquire issued share capital, loan capital, voting power or rights to assets on a winding up, as well as having control of the company or a subsidiary of it.
• Shares held by an individual or associate are disregarded where the individual may be entitled to relief under section 600M on disposal of those shares and neither the individual nor a connected person controlled the company at the date of investment.