SEIS—process for seeking advance assurance and claiming relief

The following Tax practice note provides comprehensive and up to date legal information covering:

  • SEIS—process for seeking advance assurance and claiming relief
  • Venture Capital Reliefs Team (VCRT)
  • Advance assurance from HMRC
  • Information and documentation required for advance assurance
  • Relying on SEIS advance assurance
  • Procedure for claiming SEIS relief—issuing company
  • Procedure for claiming SEIS relief—individual investors

SEIS—process for seeking advance assurance and claiming relief

IP COMPLETION DAY: The Brexit transition period ended at 11pm on 31 December 2020. At this time (referred to in UK law as ‘IP completion day’), transitional arrangements ended and significant changes began to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: What does IP completion day mean for Tax?

The seed enterprise investment scheme (SEIS), like the enterprise investment scheme (EIS), is designed to encourage investment in smaller, higher-risk trading companies by offering a range of tax reliefs to individual investors purchasing newly issued shares in those companies.

To be eligible for relief, the scheme imposes numerous requirements that must be met, including in relation to:

  1. the individual investors (see Practice Note: SEIS—conditions for relief: individual investor conditions)

  2. the issued shares, the funds raised and arrangements in general (see Practice Note: SEIS—conditions for relief: issued shares, the funds raised and arrangements in general), and

  3. the issuing company (see Practice Notes: SEIS—conditions for relief: issuing company and SEIS—conditions for relief: qualifying trades)

There is no statutory procedure for obtaining advance clearance that a proposed share issue will qualify for SEIS relief. However, an issuing company intending to meet the conditions for SEIS relief can apply to HMRC for an advance assurance that, on the

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