HMRC Guidance on Advance Subscription Agreements and SEIS/EIS

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.