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FundingUpdated 2026-10-19

How do I apply for SEIS/EIS advance assurance?

Quick Answer

You apply to HMRC's Small Company Enterprise Centre using the online advance assurance form, providing details of your company, trade, and proposed share issue. HMRC typically responds within 4-6 weeks.

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Detailed Explanation

Applying for SEIS/EIS advance assurance

Advance assurance gives your potential investors confidence that their investment will qualify for SEIS or EIS tax relief before they commit their money. While not legally required, most angel investors and networks will not invest without it.

Step-by-step process

1. Check eligibility first

Before applying, confirm your company meets the basic criteria. For SEIS: less than 3 years old, under 25 employees, gross assets under £350k, qualifying trade. For EIS: less than 7 years old (10 for knowledge-intensive), under 250 employees, gross assets under £30m.

2. Prepare your business plan

HMRC wants to understand your trade and how the money will be used. You need a clear description of your business activity, financial projections, and intended use of funds.

3. Gather company documents

You will need your latest accounts (or management accounts if pre-revenue), details of existing shareholders and their holdings, articles of association, and any shareholder agreements.

4. Complete the advance assurance form

Apply online through HMRC's Enterprise Investment Scheme service. The form asks for company details, trade description, details of the proposed share issue, and how the funds will be spent.

5. Submit supporting documents

Attach your business plan, financial projections, company structure chart, and any other documents that demonstrate your qualifying trade and intended use of funds.

6. Wait for HMRC's response

HMRC aims to respond within 4-6 weeks, though it can take longer during busy periods. They may come back with questions before issuing a decision.

7. Receive your advance assurance letter

If successful, HMRC issues a letter confirming they are satisfied the company will meet the conditions. This letter is what you show investors.

Important notes

  • Advance assurance is not a guarantee. HMRC can still reject the claim at the compliance stage if circumstances change.
  • The assurance typically covers a specific fundraising round and amount.
  • You must apply before the shares are issued, not after.
  • If HMRC rejects your application, they will explain why and you may be able to reapply after addressing the issues.
  • There is no fee for applying.

Source: HMRC VCM30070 - Advance Assurance Applications

Real-World Examples

New Tech Startup Seeking Seed Funding

A software startup developing a new AI-powered marketing tool wants to raise £150,000 through SEIS to accelerate its product development. They apply for advance assurance to attract angel investors, showcasing the potential tax benefits for those who invest in their company.

Expansion Plans for a Restaurant Chain

A successful restaurant chain operating for 3 years plans to expand into new locations and is seeking £500,000 under EIS. Applying for advance assurance demonstrates to potential investors that their investment is likely to qualify for EIS tax relief, increasing the appeal of the investment opportunity.

Social Enterprise Launching a New Product

A social enterprise developing eco-friendly packaging solutions needs £100,000 SEIS funding to finalize product design and launch a marketing campaign. Advance assurance helps reassure investors that their investment will support a worthy cause and qualify for SEIS benefits.

Common Mistakes to Avoid

  • Failing to adequately describe the innovative aspects of the business and how it addresses a market need, weakening the application.
  • Submitting the advance assurance application *after* shares have already been issued, as this can disqualify the investment for tax relief.
  • Not providing detailed financial projections or a clear use of funds, making it difficult for HMRC to assess the risk and potential impact of the investment.
  • Assuming that because a similar company received advance assurance, your application will automatically be approved; each application is assessed individually.

What happens if HMRC rejects my advance assurance application?

You can appeal the decision or modify your business plan and resubmit. Understand the reasons for rejection and address the concerns in your revised application. Seek professional advice to improve your chances.

Can I apply for both SEIS and EIS advance assurance at the same time?

Yes, if you are unsure which scheme is more suitable, you can apply for both. However, ensure your application clearly identifies which scheme each investment is intended for and that you meet the eligibility criteria for both.

Does advance assurance guarantee that investors will receive tax relief?

No, advance assurance only indicates that *based on the information provided*, the investment *is likely* to qualify for SEIS/EIS relief. The investor must still meet their individual qualifying conditions at the time of investment and HMRC conducts a final check when the investor claims relief.

What information should I provide about the individuals who will invest?

While you don't need to provide the names of specific investors during the advance assurance application, you should provide information on the *type* of investors you are targeting (e.g., angel investors, venture capital firms) and the likely investment amounts from each category.

Practical Tips

  • Thoroughly review HMRC's SEIS/EIS manual before starting the application; it clarifies the eligibility criteria and provides detailed examples of successful applications.
  • Draft a compelling business plan that highlights the company's unique value proposition, market opportunity, and potential for growth, as this will significantly strengthen your application.
  • Include detailed financial forecasts showing how the SEIS/EIS funds will be used and the expected return on investment; a clear budget demonstrates responsible financial management.
  • Keep a record of all communications with HMRC and retain copies of all documents submitted, as this will be helpful in case of future queries or audits.

Related Questions

How much can I raise under SEIS?

A company can raise up to £250,000 in total under SEIS. Individual investors can invest up to £200,000 per tax year across all SEIS investments and receive 50% income tax relief.

How much can I raise under EIS?

A company can raise up to £10 million per year under EIS, with a lifetime maximum of £24 million from all venture capital schemes combined (for shares issued on or after 6 April 2026). Knowledge-intensive companies can raise up to £20 million per year with a £40 million lifetime cap.

What trades qualify for EIS?

Most trading activities qualify for EIS, but certain trades are specifically excluded including property development, financial services, legal and accountancy services, hotels and guest houses, farming, coal and steel production, and energy generation receiving subsidies.

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