An advance assurance guarantees my investors SEIS or EIS relief.. doesn’t it?

The simple answer is no. Sorry!

Once you receive an advance assurance for your company from HMRC, you should consider it date and time stamped – and linked entirely to the information you sent to HMRC to review in order to grant it.

Any of the following examples would mean your advance assurance is not worth the paper it’s written on:

  • when you applied for your advance assurance, you didn’t tell them something about your company or your funding plans and that thing, had it been included, would have meant HMRC would not have granted the advance assurance (if you miss something from the application, you’re just kidding yourself – and your investors);
  • after the advance assurance has been granted, you make a change to your articles of association, for example, changing rights attached to shares, and that change means your company’s structure falls outside SEIS and EIS compliance;
  • after the advance assurance has been granted, you make a change to your company’s trade, so that it includes wholly or partly trading activities that are not eligible for EIS or SEIS; or
  • after the advance assurance has been granted, you create a group structure, for example, adding a subsidiary, in such a way that it is not compliant for SEIS or EIS.

On top of these examples, keep in mind the time limits for using both SEIS and EIS.

Want to get an advance assurance quickly? Read on.