To clarify, your aricle later goes on to say "The individual must retain the shares for a minimum of three years (possibly up to five if the trade commenced after the share issue date)." If the company must of traded for at least four months before the shares are issued, how can the trade commence after the share issue date?

Thanks for the message Chris.

The guide wasn’t clear and I have updated it accordingly.

The money raised by the company through EIS needs to be used for a qualifying business activity, this includes preparing to trade for a period of up to 2 years. The 3 year holding period runs from the date the company actually starts trading (if after the share acquisition date), so can stretch to 5 years if the company has prepared to trade for the first 2.

The 4 month period ensures that EIS relief can only be claimed if the company has actually traded for 4 months (either pre share issue or post), that is unless the company is wound up or enters administration or receivership for genuine commercial reasons and not part of a tax avoidance or evasion plan.

I hope that provides clarification.

Thanks

Graham