Pixel

HMRC Advance Approval For SEIS

Gary Green
Gary Green
May 31, 2016

Companies are able to apply for HMRC Advance Approval that a proposed issue of shares will qualify for SEIS relief.

This advance assurance, although not mandatory, is important for both the company and even more so for the prospective investor.

There are many risks in investing in early-stage potentially high growth businesses. At the very least, investors want to know that their investments will benefit from the advertised tax breaks. This is very difficult without advanced assurance for the SEIS in place.

At Key Business Consultants we offer advanced assurance checks as standard within our SEIS consultancy and compliance services throughout the three year investment period so that you know that you can ask us any question.

Advance Assurance

The advance assurance facility is offered by a section of HMRC known as the Small Companies Enterprise Centre (SCEC).

Companies can submit details of their plans to raise money, their structure, and their activities in advance of an issue of shares and the SCEC will advise on whether or not the proposed share issue is likely to qualify for relief.

However, even with advance assurance, there are some other steps the company must follow before investors can claim tax relief on their investments.

How To Get Your SEIS Income Tax Relief

You have to submit a completed form, known as the SEIS1, to HMRC for formal approval (whether or not you've tried to get advance approval). You can't submit the form until either:

  • The company has been trading for at least four months or,
  • If not yet trading, it has spent at least 70% of the monies raised by the SEIS.

Once the SCEC has reviewed the form and confirmed that the company has met the requirements of SEIS, the SCEC will issue claim forms known as SEIS3s which are then sent to each investor via the investor company for completion. In turn, the investor must complete the SEIS3 form, usually as part of his / her annual self-assessment tax return.

You can usually claim tax relief in the tax year the investment is made, or carried back one year. Or you can claim relief for up to five years after the 31st of January following the tax year in which you made the investment.

Interested in our services?
Fill in your details and a member of our experienced team will be in touch shortly to discuss your needs.
We adhere to strict GDPR rules and do not reveal or sell your data to any third-parties. For more, please read our Privacy Policy.
Latest Insights
July 9, 2021
Stamp Duty Land Tax (SDLT) Surcharge for Non-UK Residents

Stamp Duty Land Tax (SDLT) rates have changed again for non-residents buying a home in England...

July 7, 2021
How Is Cryptocurrency Taxed & Do I Need to Fill A Self-Assessment?

Cryptocurrency may live online with no government control or borders, but if you are in the...

July 5, 2021
Venture Capital Schemes: Tax Relief Guide For Investors

When it comes to finding out what tax relief is available for investors using a venture...

July 2, 2021
Claiming Business Asset Disposal Relief in 2021

Business Asset Disposal Relief (BADR) used to be known as Entrepreneurs’ Relief before 6 April 2020....

June 30, 2021
What Is Form 17? Transfer Of Beneficial Ownership

As a general rule, the fall-back position for couples who live together with their spouse or...

June 28, 2021
Benefits of Outsourcing Your Payroll vs Doing It In-House

Many employers investigate the possibility of outsourcing their payroll function and for some it can make...

June 25, 2021
Which Pension Scheme Should You Choose For Your Employees?

Automatic enrolment for workplace pension schemes came into effect in 2012 to encourage more people to...

June 23, 2021
End-of-Year Tax Duties: The Complete Checklist For Business Owners

It is important to carry out an annual review and ensure that you have planned properly...

June 21, 2021
How Does Marriage Allowance Work & How Do I Claim?

The Marriage Allowance is available to qualifying married couples and those in a civil partnership where...

View Our latest insights »
Get the latest UK tax & business news and guidance delivered straight to your inbox
We care about the protection of your data. No spam. Unsubscribe anytime.
Copyright © 2021 Key Business Consultants LLP. Reg: E&W OC389322
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram