Replies to Queries - 2

A software development company comprising three individuals has developed project management software and has a major financial institution potentially interested in the software. To develop it further and distribute it shares have been issued to another individual with his own business and who possesses the skills to also assist them as well as providing equity finance. It is intended that the new investor may provide services from time to time to the company in return for reasonable remuneration but he will not become an employee of the company as he has a business of his own.
On the basis that the company and the new investor initially qualify for enterprise investment scheme relief will the payment of reasonable remuneration for services from time to time result in a return of value thereby denying relief? Under section 300(2)(h) Taxes Act 1988 and section 291A(3)(f) of the...