SEIS Advance Assurance

SEIS is a government-approved investment scheme that encourages funding in early-stage companies. The scheme is designed to support start-ups during their crucial stage when looking for investment by reducing their investors’ capital risk in the form of generous tax relief.

However, before your investors commit, most of them will want to know if your business is eligible for SEIS. To provide them with the security they need, you can apply for SEIS Advance Assurance clearance which will prove your eligibility and increase your chances to secure investment.

The SEIS scheme is proven to be very popular: your investors will have the potential investment risk reduced, your company will enhance opportunities to receive funding and the UK economy will see an increase of investment in its most innovative businesses.

What are the benefits of SEIS

If your business is eligible for the SEIS scheme, you and your investors will benefit in several ways.

Your company will be able to raise up to £250,000 (for shares issued on or after 6 April 2023) under the SEIS scheme within the first 3 years of trading.

Your investor(s) will receive income tax relief of up to 50% of the value of the money invested which means 50% of the risk of the investment. An individual investor can invest as much as £200,000 in any tax year to be eligible for this tax relief.

If your company succeeds and the investors make a gain on the sale of their shares, the gain is exempt from Capital Gains Tax (CGT). In case your company fails, your investors can offset the loss on the shares against their income tax bill.

Relief can be carried back to the previous year to reduce that year’s tax liability depending on the annual limit for the previous year.

Who is eligible for SEIS

In order to receive SEIS Advance Assurance clearance, your company will need to meet several requirements, including:

• To have a permanent establishment in the UK;
•  To have less than £350k of gross assets before any shares are issued;
• To have less than 25 full-time equivalent employees at the time the shares are issued.

If you have previously received investment through the EIS or from a Venture Capital Trust, then your business is not eligible for this scheme.

Our rates

SEIS Compliance Phase One – Advance Assurance (Pre-Investment)

The preparation and submission of the (S)EIS advance assurance application to HMRC and answer queries.  – fee from £400 excl VAT. Timing 5-7 days from engagement and information provision.

SEIS Compliance Phase Two – EIS 1s & EIS 3s (Post Investment)

To prepare, complete and file the EIS 1 declaration to HMRC. To complete the (S)EIS 3 Certificates once approval is given by HMRC – annual subscription from £500 (excl VAT) or from £50 (excl VAT) monthly (minimum 12 months).

How We Work

Our team can support your business by applying for Advance Assurance on your behalf. During your initial call, you will meet our Tax expert who will learn more about your company’s background and your upcoming investment. Once agreed, we will:

1. Liaise with HMRC on your behalf to help you obtain SEIS Advance Assurance clearance.
2. After your funding round ends, we will prepare (S)EIS1 & (S)EIS3 forms for HRMC and provide certificates that enable investors to secure their tax relief.