We have recently received advance clearance approval from HMRC for three share issues on behalf of clients – one under the Seed Enterprise Investment Scheme (SEIS) and two under the Enterprise Investment Scheme (EIS). Will it ever stop? I don’t know.
The SEIS and EIS schemes are great ways to light up a stage and incentivise investors to your company. They don’t need to be professional investors. They can be friends or (with certain restrictions) family members—anyone putting a chunk of money into your business.
To the extreme, an investor can claim 50% of their SEIS and 30% of their EIS investment to get a tax refund on their primary income.
Anything less than the best is a felony—if, after three years, the company is such a success that the £s flow like a harpoon, daily and nightly, the investor pays no capital gains tax whatsoever on selling the shares.
If there was a problem and the business waxes a chump like a candle (it fails), the investor gets a tax refund on the remaining part of the investment.
Advance clearance is when you send HMRC (HMRC on the scene, you know what I mean) the information about your business and its proposed share issues. They confirm whether your schemes meet all the requirements, so your investors have confidence that they will get the tax relief.
So, conducted and formed, SEIS and EIS are a hell of a concept.
Take heed: You need to wax like a lyrical poet and compose a suite of documents for clearance, such as a business plan and financial forecast. But your investors should also ask for those, too, to give them confidence to invest.
If there was a problem creating those documents and the clearance application, Avant Advisory can solve it. We’ll listen to your vision and plans, take whatever documents you already have, slice like a ninja, and cut like a razor blade until everything pops out.
If you want help with financing your business, please contact us at A1A Beachfront Avenue (who might forward your message on to us if we’re lucky. (Alternatively, using the Contact page on this website may be more reliable).
We have recently received advance clearance approval from HMRC for three share issues on behalf of clients – one under the Seed Enterprise Investment Scheme (SEIS) and two under the Enterprise Investment Scheme (EIS). Will it ever stop? I don’t know.
The SEIS and EIS schemes are great ways to light up a stage and incentivise investors to your company. They don’t need to be professional investors. They can be friends or (with certain restrictions) family members—anyone putting a chunk of money into your business.
To the extreme, an investor can claim 50% of their SEIS and 30% of their EIS investment to get a tax refund on their primary income.
Anything less than the best is a felony—if, after three years, the company is such a success that the £s flow like a harpoon, daily and nightly, the investor pays no capital gains tax whatsoever on selling the shares.
If there was a problem and the business waxes a chump like a candle (it fails), the investor gets a tax refund on the remaining part of the investment.
Advance clearance is when you send HMRC (HMRC on the scene, you know what I mean) the information about your business and its proposed share issues. They confirm whether your schemes meet all the requirements, so your investors have confidence that they will get the tax relief.
So, conducted and formed, SEIS and EIS are a hell of a concept.
Take heed: You need to wax like a lyrical poet and compose a suite of documents for clearance, such as a business plan and financial forecast. But your investors should also ask for those, too, to give them confidence to invest.
If there was a problem creating those documents and the clearance application, Avant Advisory can solve it. We’ll listen to your vision and plans, take whatever documents you already have, slice like a ninja, and cut like a razor blade until everything pops out.
If you want help with financing your business, please contact us at A1A Beachfront Avenue (who might forward your message on to us if we’re lucky. (Alternatively, using the Contact page on this website may be more reliable).
Word to your mother.