EIS Advanced Assurance Letter to HMRC

It is possible (and most likely advisable) for the issuing company to ask HMRC if the proposed share issue is likely to qualify for EIS tax relief before the EIS shares are issued.

This is called advanced assurance, and this form of cover letter may be used to accompany the advanced assurance application.

Use this cover letter to support an advanced assurance application

Only companies intending to issue shares can apply for advanced assurance.

Individuals considering investing cannot apply, and advanced assurance only relates to whether it is expected that the company will be a qualifying company and the shares will be eligible shares.

Important limitation on what advanced assurance confirms

Advanced assurance does NOT confirm whether any individual shareholder is eligible for relief.

HMRC guidance and application form

HMRC has further details on advanced assurance here.

HMRC also has an application form EIS-SEIS(AA) which can be used to apply directly online for advanced assurance.

When to use this letter rather than the HMRC form

It is not compulsory to use the HMRC form, particularly if there are special circumstances which the company may feel it needs to explain.

The company may send a letter to HMRC outlining its application, and this cover letter may accompany the advanced assurance application only if the HMRC form is not being used.

Independent advice

It is strongly recommended that independent legal and tax advice is sought for companies or investors considering EIS investment.

EIS Advanced Assurance Letter to HMRC is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.