Here’s how the process of obtaining EIS certificates works.
1. The company gets EIS advanced assurance from HMRC before it starts a fundraise. HMRC never guarantees that a company will certainly qualify, but an advanced assurance is the closest to it. You can usually download a copy of the company’s advanced assurance letter from the deal page.
2. Once the funding round is successfully completed and shares are issued, SyndicateRoom sends an application to HMRC (referred to as an EIS1) asking to grant investors EIS tax relief. It usually takes HMRC around three months to process this application.
3. HMRC then sends SyndicateRoom blank EIS3 forms (the certificate that you receive), which the SyndicateRoom nominee completes and returns to you. You can then attach them to your tax return to claim relief if you are eligible to do so.
The full process of obtaining an EIS certificate for an investment can take three to four months.
Risk warning: This post is for information purposes only and should not be taken as advice. Investing in early-stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. SyndicateRoom is targeted exclusively at sophisticated investors who understand these risks and make their own investment decisions.
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