Advisory & corporate finance
In short Approval once does not mean approval again Test whether you are an ‘undertaking in difficulty’ Keep real risk to investor capital Measure gross assets before the share issue Investors who join the board may count as employees Watch the 30% rule across equity and debt Knowledge intensive status can apply retrospectively If you … Continue reading Avoid later phase EIS pitfalls
In short Six things HMRC will look for in a first application Apply the risk to capital ‘gateway’ test Apply the independence test Check for excluded trades and borderline activities Check the employment test No blanket applications for speculative filings Check the share class and use of funds qualify EIS is a valuable venture tax … Continue reading Avoid first time EIS pitfalls
Research and Development (R&D) tax relief has been part of the tax landscape since its introduction in 2000. The rules are not particularly intuitive so the regime is regarded by some as complex. Further changes announced in the Autumn Statement 2022 mean there is an increased potential to trip up going forward. Here is our … Continue reading Don’t get caught out by changes to the R&D tax regime
In short The main rules are simple; the conditions around them are not A dual SEIS and EIS round not split into separate tranches Directors investing without care over connection and pay Funds not going to a qualifying trade Investor shares carrying preferential economic rights Trading for more than three years for SEIS, or seven … Continue reading SEIS and EIS Pitfalls
In short The conditions run to the termination date, not the share issue Appointing a shareholder, or their relative, as a director Receipts of value, including a buyback from any shareholder A change or diversification of trade beyond the 20% rule Acquiring an older company, which moves the first sale date Changes to shareholder rights, … Continue reading Ongoing risks for venture capital reliefs such as EIS