EIS Relief: HMRC publish new procedures.
HM Revenue and Customs (HMRC) is introducing new processes to help manage applications for advance assurance and EIS compliance statements from companies for investments made on or after 6 April 2015 that fall outside certain limits. With immediate effect, HMRC will not process advance assurance applications in respect of companies that, in general
- are more than 7 years old and have not received a risk finance investment in the past,
- have received more than £10 million risk finance investment funding (formerly known as risk capital investment funding)
The guidance sets out the circumstances in which advance assurances may no longer be given and the new information that will now be requested to support forms EIS1 along with the reasons why these changes have been made. It also explains how the qualifying status of investments made by Venture Capital Trusts (VCT) on or after 6 April 2015 may also be affected.