What is the application process?

📘Overview

This article explains how the Seed Enterprise Investment Scheme (SEIS) application process works, including advance assurance, post-investment forms, and how investors ultimately claim their tax relief. It also notes that the Enterprise Investment Scheme (EIS) follows the same overall process.

📊 How SEIS Is Administered

SEIS is administered by HMRC through the Small Company Enterprise Centre (SCEC). The SCEC reviews applications and decides whether a company meets the qualifying conditions for the scheme.

📘 Applying for Advance Assurance

Companies may apply to the SCEC for advance assurance, which is HMRC’s preliminary confirmation that a proposed share issue is likely to qualify for SEIS tax reliefs.

Advance assurance is not mandatory, but it is strongly recommended because it gives investors confidence before they commit funds.

Typical SCEC response time: four to six weeks.

📘 Submitting the SEIS1 Form (After Shares Are Issued)

Once the shares have been issued, the company (or its advisers) must submit the SEIS1 form to the SCEC. This step is required whether or not advance assurance was obtained.

A company can only submit the SEIS1 when one of the following conditions is met:

• It has been trading for at least four months, or
• It has spent at least 70% of the money raised from the qualifying share issue.

Processing times for SEIS1 forms are usually four to six weeks.

📘 Receiving SEIS2 and SEIS3 Forms

If the SCEC approves the application:

• The company receives an SEIS2 form (the approval certificate).
• HMRC also issues SEIS3 forms, which the company passes to each investor.

📘 How Investors Claim SEIS Tax Relief

The SEIS3 form allows investors to claim their income tax relief. They can do this in one of two ways:

• By including the details in their self-assessment tax return, or
• By completing the SEIS3 form and sending it directly to HMRC.

Investors cannot claim tax relief until they receive the SEIS3.

📘 How This Differs from EIS

The application process for the Enterprise Investment Scheme (EIS) follows the same sequence of steps as SEIS, including advance assurance, submission of the EIS1 form, and issue of EIS2 and EIS3 certificates.

💡 Key Points

• The SCEC manages all SEIS assessments and approvals.
• Advance assurance is optional but helps reassure investors.
• SEIS1 can only be submitted after trade has begun (four months) or after spending 70% of funds raised.
• Investors require the SEIS3 form before they can claim relief.
• EIS uses the same administrative process.