The Enterprise Investment Scheme (EIS) or the Seed Enterprise Investment Scheme (SEIS) may find it useful to have an advance assurance that HMRC will regard the shares it intends to issue as satisfying the requirements of the Scheme.
HMRC has published a new Advance Assurance Form EIS/SEIS(AA) to be used by a company when it seeks assurance, in advance of a share issue, that qualifies under the scheme(s).
Before giving an assurance, HMRC will need to be satisfied that:
- the company can be expected to be a qualifying company (VCM20500)
- the shares to be issued will be eligible shares (VCM12010)
- the shares will be issued to raise money for a qualifying business activity (VCM12070)
- the money raised is to be employed only by companies which satisfy the rules of the Scheme (VCM12100).
The VCM references above are to the relevant pages of the Venture Capital Schemes Manual.
HMRC has also published guidance on the new SEIS scheme, although the legislation governing SEIS will not become law until the Finance Bill receives Royal Assent, expected to be in July 2012.