Obtaining an advance assurance for EIS or SEIS is not a pre requisite to make an application under either scheme once your round has closed.
The reasons for obtaining an advance assurance before taking in money from investors are to:
- ensure you can boldly tell potential investors that their investment will be eligible.
- have the document in hand to show investors when they ask.
- unearth any issues with your proposed trade, group structure or something else (if discovered before the investors wire their cash, there is a possibility to make changes).
Remember, your advance assurance is only as good as the information you provide to HMRC and any change in that information (e.g to your company’s trade, articles of association or group structure) could take your company outside of eligibility, irrespective of the fact HMRC have granted an advance assurance.
To find out when your advance assurance expires, read on!