What is SEIS/EIS advance assurance?

If you’re looking into applying for SEIS (Seed Enterprise Investment Scheme) or EIS (Enterprise Investment Scheme) funding, you’ve probably seen the words ‘advance assurance’ appear throughout your research. 

Advance assurance is HMRC’s way of determining whether a company meets the conditions of SEIS/EIS, and whether an investment will qualify for the tax benefits associated with the schemes. 

When applying for SEIS/EIS advance assurance, you’ll be asked a number of questions about your company, your business plan and the proposed investment. 

HMRC will then take all this information to see whether your company – and the proposed investment – meets the conditions of the scheme you’re applying for. 

Advance assurance isn’t mandatory, but it will go a long way to help you secure the investment you need. 

In fact, many SEIS/EIS investors only invest in companies that have received advance assurance, as it’s their way of ensuring they will receive the tax benefits. 

Advance assurance doesn’t determine whether an investor will be eligible for the tax benefits, so it’s worth understanding the rules for investors so you know who can invest in your company. 

This is more of a concern for investors, however, as the onus is on them to ensure they too meet the conditions of the scheme in order to claim part of their investment back through tax relief. 

Once you have received advance assurance and investment is made, both your company and investors must continue to follow the conditions of the scheme you’ve applied, otherwise the tax benefits may be withdrawn. 

Download our free guide to learn more about SEIS and EIS.

How do I apply for advance assurance? 

Visit HMRC's website to start your application.

 

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