E3.103 Advance assurance from HMRC for EIS
There is no statutory procedure for obtaining an advance clearance that a proposed investment scheme meets the conditions of a Venture Capital Scheme (ie EIS, SEIS, SITR or VCT). However, a company secretary or director (or an authorised agent) hoping to attract investment may apply to HMRC for an advance assurance that, on the basis of information supplied with the application, HMRC may be able to authorise the company to issue compliance certificates to subscribers enabling them to claim relief (see E3.158)1.
It is essential that the assurance is sought in advance of funds being raised or shares being issued. HMRC will not give assurance where relevant shares have already been issued2. Any advanced assurance given is not a guarantee that the investment scheme will qualify. It is simply an assurance that can be used to give comfort to potential investors that the scheme is likely to qualify3.
HMRC will not give an opinion on speculative investments, where the company is raising a tax-advantaged investment for the first time4.
Details of possible investors must be provided
HMRC require that details of possible