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When can SEIS/EIS applications be sent to HMRC?

Although the reliefs are claimed by and benefit investors, the company will need to be involved in claiming the reliefs. The process for claiming relief is as follows:

  • The investment completes and the company receives the investment funds;
  • Company submits form EIS1 to HMRC (this is an online form and it requires a lot of supporting documents, unless those documents were provided at advance assurance stage). Before the form can be submitted:
    • for SEIS the company must have been trading for 4 months or spent at least 70% of the SEIS money; or
    • for EIS the company must have been trading (or carrying on R&D which will lead to a trade) for 4 months. The EIS form must be submitted within 2 years of the end of the tax year in which the shares are issued (or in which the company starts to trade, if later);
  • Provided HMRC accept the application, they issue form EIS2 to the company, and the company then has to issue certificates (EIS3) to the investors;
  • Each investor is then responsible for claiming the relief in their personal tax returns.

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