Advance Assurance Application Enterprise Investment Scheme

The Advance Assurance is a mechanism that allows companies to pre-qualify themselves with HM Revenue Customs HMRC as a qualifying company for the purposes of raising funding under SEIS. It is important to remember that many investors especially foreign investors require Advance Assurance to invest in a company.

Enterprise Investment Scheme Seed Enterprise Investment Scheme And Social Investment Tax Relief Commentary 2021 Gov Uk

Those companies that have been trading for less than two years note that it is the trading date that is important rather than the date of incorporation.

Advance assurance application enterprise investment scheme. It is possible and most likely advisable for the issuing company to ask HMRC if the proposed share issue is likely to qualify for EIS tax relief before the EIS shares are issued. Check the requirements for the. You can ask HMRC if your share issue is likely to qualify before you go ahead this is called advance assurance.

VCM60110 - Venture Capital Schemes Manual. Investors receive 50 income tax relief on the amount they invest and a capital gains tax-free exit. You should highlight any area of doubt and give a technical explanation as to why you consider the company meets the particular requirement.

Latest company accounts and accounts of any subsidiary company Details of all trading or other activities. On the other hand a company can benefit from the Seed Enterprise Investment Scheme SEIS and subsequently from the EIS scheme after reaching the full financial limits of the SEIS. EIS Assessment Assurance Implementation.

Venture capital schemesthe Enterprise Investment scheme. It is not obligatory although it is good practice. The Seed Enterprise Investment Scheme SEIS is for early-stage companies ie.

Companies that are actively seeking funding under the Seed Enterprise Investment Scheme SEIS or their authorised agent should use this checklist to make sure they give us all the right information first time when applying for an advance assurance. Advance assurance application Enterprise Investment Scheme Seed Enterprise Investment Scheme The following documentsinformation are attached. Youll need to make separate applications for each proposed investment that you want advance assurance for.

The UK government in the 2017 budget made significant changes to the legislation surrounding the Enterprise Investment Scheme in particular the removal of so-called asset-backed investment opportunities has reduced the number of companies both applying and accordingly the number of advance assurance approvals granted by HMRC. Although Advance Assurance does certify that the company qualifies for SEIS at the time of application it doesnt mean it always will. The advance assurance application must confirm the company meets each requirement or condition of the scheme and explain how supported by relevant documents and other information.

Enterprise Investment Scheme - Advance Assurance Applications Table 81a. How to apply for SEIS EIS Advance Assurance. If any circumstances change within the business over the course of investment through SEIS it could result in exclusion form the scheme and the tax relief not being granted.

Advance Assurance can be obtained for schemes such as the Enterprise Investment Scheme EIS the Seed Enterprise Investment Scheme SEIS Social Investment Tax Relief SITR and Venture Capital Trust VCT investment schemes. Although an extremely valuable scheme for growing businesses qualification and. Most sophisticated investors will insist that the company has received advance assurance from HMRC of.

Number of companies seeking advance assurance number of applications received approved and rejected from 2006-071 to 2016-17p Applications submitted by April 20172 Numbers. SEISEIS Advance Assurance applications must include the name and address of at least one potential investor and investment intent for at least 30 of the amount of SEISEIS youre applying for. This is called advanced assurance.

The Enterprise Investment Scheme EIS much like its sister SEIS scheme is designed to help your business raise equity finance. EIS Advanced Assurance Letter to HMRC. Who can apply for Advance Assurance.

How to apply for the Enterprise Investment Scheme EIS So once you know youre eligible theres one final part how to apply for EIS funding. This form of cover letter may be used to accompany the advanced assurance application. You can apply for Advance Assurance directly with HMRC or via SeedLegals.

Enterprise Investment Scheme EIS Social Investment Tax Relief SITR Venture Capital Trust VCT Research and Development R. The long and short of it is that when youve issued your shares you complete a compliance statement EIS1 and send it to HMRC. Applications which dont contain that will be deemed as speculative investments and rejected.

Companies can raise up to 150000 under SEIS. The Enterprise Investment Scheme EIS. VCM60180 - Venture Capital Schemes Manual.

This will avoid delays. The Enterprise Investment Scheme. Before submitting an advance assurance application for the Enterprise Investment Scheme EIS the Seed Enterprise Investment Scheme SEIS or the Venture Capital Trusts VCT scheme the company.

Companies seeking investment under the Enterprise. If you are a tech start-up going through a fundraising process with investors subject to UK tax then Seed Enterprise Investment Scheme SEIS and Enterprise Investment Scheme EIS is a scheme that will put you at an advantage. Advance Assurance for Enterprise Investment Scheme and Seed Enterprise Investment Scheme As the relief available for EIS and SEIS investments is a significant incentive for investors they will often require confirmation that the investment will qualify for relief before they will transfer any funds.

Any company can apply for AA but to be successful it is crucial that the company meets all of the eligibility criteria specified by the relevant tax relief scheme.

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