To qualify for relief under the seed capital scheme the activities of the company, in which the investment is made, are required to constitute a qualifying new venture. A qualifying new venture means a venture consisting of trading activities, which are set up and commenced by a new company other than:
(a) a trade which was previously carried on by another person and to which the company has succeeded or
(b) a venture which was previously carried on as part of another person’s trade.
If an individual establishes a new company that takes over a trade that was previously carried on by another person then the investment in the shares of the new company will not qualify for seed capital relief.