What are Connected Person Rules (SEIS/EIS)?
Connected person rules are HMRC regulations that restrict who can claim SEIS or EIS tax relief based on their relationship with the company.
Connected Person Rules (SEIS/EIS) Meaning
The connected person rules (SEIS/EIS) focus on preventing the abuse of tax relief by people who effectively control the company. To define a connected person in practice, it includes founders, directors, employees, and close family members, as well as anyone holding more than a permitted shareholding. A clear, connected person rules definition ensures that SEIS/EIS relief is reserved for genuine external investors rather than insiders. These rules stand for protecting the integrity of the UK venture tax relief system and maintaining fair access for independent investors.
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