Advance assurance
Many investors will look for companies that have Advanced Assurance from HMRC. This gives them comfort that their investment will qualify for SEIS and or EIS tax benefits.
Investments are risky, someone is taking a gamble with their money. So it’s not surprising that investors look for any upsides that may counter the risks.
The Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS) are government-approved incentives, based on reducing an investors tax burden – which encourages them to invest in early-stage, high-risk businesses, which may otherwise be over looked. Obtaining advanced assurance can further reassure investors by confirming a company’s eligibility upfront.
For more information of the SEIS and EIS scheme conditions and benefits, see our guides about Seed Enterprise Investment Scheme and Enterprise Investment Scheme.
SEIS Advance Assurance
Advance Assurance gives potential investors confirmation from HMRC that your company is likely to qualify for SEIS tax relief before they invest.
What You Need to Submit:
SEIS Advance Assurance Form (SEIS(AA)) – or the combined SEIS/EIS form.
Business Plan and Financial Forecasts – outlining your objectives, growth plans, and how the funds will be used.
Cover Letter – explaining your eligibility and confirming the intention.
Latest Company Accounts – if available.
Cap Table – showing existing and post-investment shareholdings.
Articles of Association – including any planned updates.
Shareholder Register – showing current ownership.
Details of the Investment – how much you intend to raise, and how the capital will be used.
Investor Details (optional) – names and amounts they intend to invest, or at least a demonstration that there is investor interest.
EIS Advance Assurance
Typically used once SEIS limits have been used or for larger companies. HMRC will give an indication that your planned share issue should qualify.
What You Need to Submit:
EIS Advance Assurance Form (EIS(AA)) – or use the combined SEIS/EIS form if applicable.
Business Plan and Financial Forecasts – with a breakdown of how the funds raised will be used in a qualifying trade.
Cover Letter – summarising your eligibility and plans.
Most Recent Company Accounts – if available.
Cap Table – before and after investment.
Articles of Association – up to date, or planned amendments included.
Shareholder Register – including any corporate shareholders.
Investment Summary – how much you’re raising, share price, and expected investor tax relief.
Investor Interest Evidence (optional) – can include letters or expressions of interest.