From 2nd January 2018, HMRC made a change to their policy regarding advance assurance applications for SEIS and EIS. The aim of the change being to reduce workloads and therefore the turnaround time for applications.
Companies must now include details of the investors they have lined up for their planned funding round.
Clearly this will reduce speculative applications being made to HMRC by companies that do not end up raising investment. Conversely however, the change will slow down other rounds from closing. Companies will not have the advance assurance in hand when they are initially pitching to investors, being now forced to make the application midway through the process.
We are often asked whether you have to get an advance assurance, read on.