S(EIS) Advance Assurance allows companies to gain provisional confirmation from HMRC that an investment would meet the conditions of the S(EIS) scheme for investors. This allows potential investors to see whether your company may qualify for the potential S(EIS) Tax Reliefs. S(EIS) Advance Assurance will not show whether the potential investor qualifies for the S(EIS) scheme.
Advance Assurance was introduced by HMRC as full SEIS/EIS eligibility can only be granted by them after the investment has been made.
Advance Assurance was introduced to give investors assurance that their investments should be eligible based on the information they’ve been provided.
S(EIS) Advanced Assurance is not a legal requirement for companies but it can boost a start-ups chances of fundraising as potential investors can claim tax reliefs from an investment into said company.
The application can be filled out by: the company secretary, a director, or a trustee, if the social enterprise is a charitable trust.
The following information may be required:
You can apply for S(EIS) Advance Assurance and find out more information on the official HMRC website
Fundraising is not easy. Start-ups can spend months seeking funds in order to boost their growth or keep them above water. Having S(EIS) can majorly improve the chances of a start-up getting funded.
High net worth individuals and angel investors will likely seek to invest in start-ups that have S(EIS) Advanced Assurance, start-ups receive the full amount of the investment and investors can receive multiple tax reliefs. To brush up on knowledge regarding SEIS / EIS, read our complete guide here