Hi thanks for the replies. I maybe could have gone into more detail. Yes the scheme we are looking at it the Revenue Seed Capital Scheme. The reason we are looking for someone who is recently retired is that the return on the investment will be primarily through wages. As per the scheme you have to take up employment in the business within 6 months of making the investment. What we are proposing is that within 6 months the investor takes employment in the business which generates an income/return- whether or not they are involved in any day to day basis will be based on their skill set and if they are looking for a new challenge. The investor will be given 15% of the shares in the business which in 3 years are convertible into a loan debenture by the business. From our figures(and I'm using rough estimates)- the investor would invest 100k on paper. From this they can claim relief of approx 30k against their previous income. We(as personal directors) would lend the investor the 100k in order to raise the relief- dthus insulating the investor. The business can claim the relief, the investor gets an income and in 3 years the shares in the business are converted to a repayable loan and we as directors get our personal loan repaid.
Apologises if this is long winded but I hope it is followable.