Yes. The original Investment Agreement:
It is proposed that Richard, Karl and myself would invest in Glopho immediately to alleviate the current strained cash situation of the company. This is a stand-alone funding proposal, separate to the possible remuneration as supporters, possible employees and/or Directors of the company at some stage in the future.
The proposed structure is as follows:
Neither Karl or Erik (the co-investors) were eligible for EIS as they are resident overseas. Erik was the Chairman at the time of investment. Emailed confirmation from all parties to accept this proposed agreement.
Are you saying they did less than their 'upmost'? On what basis was it refused please?
They failed to complete registration of the investment as an EIS investment (I think they would have been required to submit EIS 01, and receive back EIS 03 that I would have been given and presented to support my income tax rellief, CGT, IHT and Capital Loss write-off relief against this. Instead, with news beginning to emerge of the SEIS scheme, they decided to pursue their next round on those terms (which precluded any earlier VCT or EIS investment)
What loss have you suffered please?
I have not been able to claim Income Tax Relief (30% of the investment, £2,250). I will be liable for capital gains tax on any gain realised (which would otherwise have been free of capital gains tax, unlimited value), I would not be able to claim capital loss write-off if it fails (up to £2,100 value I think) and have lost the IHT relief (which on the grounds I am still alive doesn't amount to much yet)
You need to write and set out your losses and request a payment within 14 days or say you will go to Court within 14 days. You should make sure you send this recorded delivery and keep a copy.
If they do not payment you then you can issue proceedings in the County Court. You can either do this online at: www.moneyclaim.gov.uk or by completing form N1 http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n001-eng.pdf and take it to your local County Court.
The Court will then issue a claim which a copy will be sent to the Defendant who will have a limited time to defend it, if not you can enter Judgment and enforce.
If the matter is defended it will be set down for a trial. If the claim is for £10,000 or less it will be a small claim and you will not need representation.
Can I clarify anything for you about this today please?
Can my request for payment include a request for additional equity as part of that (as that would be a fair way to offset the Capital Gains Tax liability)
Possibly, but keep it all under £10k.
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