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In Inferno Films Limited v HMRC [2022] TC08472, the First Tier Tribunal (FTT) upheld the appeal of a Welsh film company. It found that there were objectives to grow the business and as such the risk to capital criteria was met, allowing Enterprise Investment Scheme (EIS) status to be claimed.

The FTT reviewed the legislation and HMRC's contention that the company did not meet the requirements on the following grounds:

The FTT decided:

The FTT agreed with the company's arguments and the appeal was allowed.

Useful guides on this topic

EIS: Enterprise Investment Scheme
When can EIS relief be claimed?  What are the conditions for EIS relief?  What are the benefits of EIS relief?

SEIS: Seed Enterprise Investment Scheme
When can SEIS relief be claimed?  What are the conditions for SEIS relief?  What are the benefits of SEIS relief?

Risk to capital: EIS, SEIS and VCTs
'At a glance' guide to the risk-to-capital condition for the Enterprise Investment Scheme (EIS).

External link

Inferno Films Limited v HMRC [2022] TC08472


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