Enterprise Investment Scheme

Companies seeking investment via Connect East should ideally be registered under the Enterprise Investment Scheme.

The Enterprise Investment Scheme (EIS) is administered by the Small Company Enterprise Centre (SCEC) in HM Revenue & Customs (HMRC) – contact details

The SCEC decides if a company and a share issue qualifies. If they do, the SCEC then takes responsibility for checking the accounts etc of the company to ensure that it continues to meet the requirements of the Scheme. The SCEC also operates an advance assurance scheme, whereby companies can submit their plans to raise money, details of their structure and trade etc. before the shares are issued, and the SCEC will advise on whether or not the proposed issue is likely to qualify. Although companies are not required to use it, we recommend using the HMRC Form EIS(AA) to make such an application.

Once the shares are issued – irrespective of whether or not an advance assurance has been given – the company has to complete form EIS1 and send it to the SCEC. This form can be got from the SCEC, or downloaded from the HMRC website. A separate form EIS1 must be submitted for each share issue. Form EIS1 cannot be accepted by the SCEC unless the company has been trading for at least four months. And it also cannot be accepted if it submitted later than two years after the end of the year of assessment in which the shares were issued (or two years after the end of the four month period if that is after the end of that year of assessment). If the SCEC accepts that the company, its trade, and the shares all meet the requirements of the Scheme, it will issue a form EIS2 to that effect, and supply sufficient forms EIS3 for the company to send to the investors so they can claim tax relief. This process is repeated each time a company issues shares which it wishes to attract EIS reliefs for investors.

HMRC Small Company Enterprise Centre

The specialist staff at the Small Company Enterprise Centre (SCEC) are available to give advice on the workings of the Scheme. Their contact details are:

Small Company Enterprise Centre
HM Revenue & Customs
1st Floor Ferrers House
Castle Meadow Road

Tel: 0115 974 1250
Fax: 0115 974 2954
Email: Small Company Enterprise Centre

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