As you are not sure, you have said ''I could become an unpaid Director and later become a paid Director, providing the reasonable rules are covered"
So that would lead me on to ask, are you certain that I don't need to have been appointed an unpaid Director in June 2013 (when I bought the shares) AND what is the reasonable length of time that you are referring to? (in between changing from unpaid to paid) - 1 week, 1 month, 3 months?
Originally you said I could just go straight to paid Director and when I sent you more information, you still stuck to that and have now come up with this 'covers all eventualities' answer.
Hence, my question has not been answered by an expert, as yet.
I post my question again, asking for assistance.....
I invested in a company (31 shares of 1200 ordinary shares, 2.5%) that I was totally 'unconnected' with in June 2013 which allowed me to qualify for EIS.
I have been approached by the company to take on a Directors Role on a paid basis (this could be as a Board Member or not - if it suits me from a tax perspective either way) - I thought that this may make EIS invalid.
Their Finance Director suggested that I maybe look into the reason ITA07/S169 whereby a Director can be connected as a 'Business Angel' who subsequently becomes a Paid Director and still qualify for EIS (30% income tax relief and CG exemption upon sale).
- Can anyone clarify if this looks correct or do I have to have been made a non-exec Director in June for this to stand - refer to point 1.3.3 on the guidance pdf attached.
- Or do I not need to have been an unpaid Director at all, prior to being a paid Director as I'm still unconnected?
- Does the Income tax relief and CG exemption still apply if I become a paid Director in these circumstances?
- Any assistance on what 'reasonable' remuneration means would also be appreciated?