VCM16060 - EIS: income tax relief: general requirements: meaning of 'knowledge-intensive company'

ITA07/S252A

If a company is a knowledge-intensive company, the thresholds of certain requirements a company must meet are higher than for other companies

Investments made on or after 15 November 2015

  • The number of full time equivalent employees must be less than 500 (instead of 250)
  • The total investment limit is £20 million (instead of £12 million)
  • The basic age limit (condition A) by which the initial relevant investment must be made is 10 years after the company바카라 사이트™s first commercial sale (instead of 7 years).

Investments made on or after 6 April 2018

  • The maximum amount of EIS investments an individual may make in a tax year is £2 million (instead of £1 million) so long as any amount over £1 million is invested in one or more knowledge-intensive companies ()
  • The maximum amount of relevant investments a company may raise in any 12 month period is £10 million (instead of £5 million) ()

Additionally, for investments made on or after 6 April 2018, a knowledge-intensive company may use a different method to determine the start of the 10 year period which is used to specify the end of the company바카라 사이트™s initial investing period. Instead of using the date of first commercial sale (or date of commencement of trading) (see ) the company can use the date on which its annual turnover reached £200,000.

To be a knowledge-intensive company, at the time of the investment the company must meet:

  • at least one of the two operating costs conditions and
  • at least one of the innovation condition and the skilled employees condition

The operating costs conditions are extended to start-up companies for investments made on or after 6 April 2018, when determining the maximum amount of investments an individual may make under the EIS and the maximum amount of relevant investments a company may receive in a 12 month period.

Where a company is a knowledge-intensive company because it depends upon meeting the skilled employees condition, it must continue to meet that condition for at least 3 years following the date the investment was made.

See to for more details of the definition of a knowledge-intensive company.