Enterprise Investment Scheme: assurance application to HMRC

Letter seeking assurance from HMRC that the company issuing shares is a qualifying company for the purposes of the Enterprise Investment Scheme.

For shares issued on or after 6 April 2015, companies that benefit substantially from any subsidy for the generation of renewable energy will not qualify for relief unless the company is a qualifying community energy organisation.

Note: The government intends to change, and add, new qualifying conditions at the earliest legislative opportunity after state aid approval is obtained. For the changes, see Legal update, Venture capital schemes: draft legislation to implement March 2015 Budget announcements published for consultation. However, it has warned that the European Commission may not accept that the proposed changes/additions comply with revised state aid guidelines, which require investments to be made in companies no older than 7 years and subject to a maximum investment limit of €15 million (and, therefore, may require recovery of tax reliefs). Further, until the European Commission clarifies the position, HMRC will not process advance assurance applications for companies that fail the state aid 7 year limit (subject to one exception) or have received more than £10 million in risk finance investment. HMRC has also confirmed the additional information that must be included in the assurance application to demonstrate that these conditions are met.


 

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