HMRC Guidance on Advance Subscription Agreements and SEIS/EIS

  • 1 min read

On 30 December 2019, HMRC released some helpful guidance on Advance Subscription Agreements (ASAs) and the application of EIS/SEIS. In order to qualify for SEIS/EIS, any ASA must :

  • not in effect be a loan
  • must not function as an investment instrument that offers other benefits (such as investor protections)
  • not permit the subscription monies to be refunded under any circumstances
  • not be capable of being varied, cancelled, or assigned
  • not bear interest 
  • have a longstop date (expected to be no more than 6 months)

It is also important to note that SEIS/EIS relief will only be available from the date of the share issue.


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