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Thomason and EIS

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In Thomason & others v HMRC (TC000829 – FTT), on a careful construction of the EIS legislation EIS relief was granted on shares issued to directors of the issuing company. The First-tier Tribunal ruled that the company was not carrying on a trade at the critical date, as the shares had been issued ten days before the transfer as a going concern of the trade of a company where the directors had previously been employed. However, the Tribunal disregarded a requirement relating to the minimum share subscription. If HMRC do seek to appeal to Upper Tribunal then the First-tier Tribunal's Decision may be vulnerable, with costs implications for the company directors

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