What are Disqualifying Arrangements (SEIS/EIS)?
Disqualifying arrangements are structures or agreements that cause SEIS or EIS tax relief to be denied because they undermine the genuine commercial risk of the investment.
Disqualifying Arrangements (SEIS/EIS) Meaning
The disqualifying arrangements (SEIS/EIS) centre on preventing tax-driven schemes with little real business risk. To define disqualifying arrangements in practice, they include setups where the company’s main purpose is to secure tax relief rather than grow a trade, or where investors are protected from meaningful loss through side agreements, pre-arranged exits or capital protection mechanisms. Clear disqualifying arrangements ensure SEIS/EIS relief is available only for genuine growth investments that meet the risk-to-capital condition. These rules stand for safeguarding the integrity of the UK venture tax relief system.
Learn more about SEIS, EIS and eligibility rules at UndoCapital.
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