EIS relief - connected person

[chucklebutty]

I have read the HRMC rules and have a situation that is not quite clear to me - I wondered if anyone else had come across this.

The person is connected to Company A (paid director, not a shareholder). As part of a management buy out, a new 'Company B' is being formed that will buy the shares of Company A. If the person puts cash into company B, new investment co with no connected persons, can the person claim EIS relief on the monies paid into Company B?

We've received accountant advice that it's a no...would be nice if it was a yes.

[TNJ]

Your accountant is correct

The director is connected with Company B as he is an employee of its subsidiary.

Sorry!

[chucklebutty]

Thanks. And what a shame...