Apply for SEIS/EIS Advance Assurance

Advance Assurance is available in respect of both SEIS and EIS . As neither relief can be applied for until the investment in question has been made, submitting the relevant information to HRMC ahead of this allows the company to get an indication of whether HMRC agree that the investment (and the company) will qualify under the terms of either regime. This means that if there is any objection by HMRC as to eligibility this can be dealt with before any investment which otherwise may not qualify.

Having said that, the assurance itself is based on the information provided so the more specific and accurate an application for advance assurance is, the more reliable the indication from HMRC will be as a result.

1. Use our application form to complete the Advance Assurance application which will take roughly 20-30 minutes to complete.

2. One or two days for our legal and tax experts to review your application.

3. Final detailed documentation check and review

4. Once submitted HMRC will take around 15 days to provide the results.

SEIS targets investment for early-stage companies:

1. Period from first commercial sale to investment - <3 years

2. Maximum number of staff - <25

3. Maximum inward investment eligible - £250,000

4. Company maximum gross assets when shares issued - <£200,000

5. Tax relief on investment for the investor - Can claim 50% of investment made

6. Tax relief for the investor on any losses made - Yes, at highest rate tax paid for net investment

EIS supports larger and more established businesses:

1. Period from first commercial sale to investment - <7 years

2. Maximum number of staff - <250

3. Maximum inward investment eligible - £5,000,000 (tax period) and £12,000,000 (company life time)

4. Company maximum gross assets when shares issued - <£15,000,000

5. Tax relief on investment for the investor - Can claim 30% of investment made

6. Tax relief for the investor on any losses made - Yes, at highest rate tax paid for net investment

SEIS and EIS Advance Assurance is a process that allows companies to obtain confirmation from HM Revenue & Customs (HMRC) that their proposed SEIS or EIS fundraising activities are likely to qualify for tax relief.

The Advance Assurance process involves submitting an application to HMRC, which includes information about the company's business activities, financial projections, and the proposed use of funds raised through SEIS or EIS.

If HMRC is satisfied that the company meets the qualifying criteria for SEIS or EIS, they will issue an Advance Assurance letter, which can be shown to potential investors to provide them with greater confidence that their investment will qualify for tax relief.

The SEIS and EIS Advance Assurance process is voluntary, but it can be a useful tool for companies looking to attract investment through SEIS or EIS, as it can provide reassurance to potential investors and speed up the investment process.

HMRC will generally contact you once they have made a decision. If your application is successful you will receive a statement which you can show as evidence to your investors. If your application is unsuccessful then HMRC will provide feedback and reasons as to why they don’t believe your application meets all the necessary requirements and conditions. However, HMRC will not respond at all where your application was incomplete, this is where our experts can help you in getting all the right documents to make your application success.