VCM21000 - EIS: general: procedure: outline

In outline, the statutory procedure for obtaining relief in respect of a subscription for shares is as follows:

• The company that has issued the shares supplies a statement to HMRC on form EIS1, listing the subscribers who have requested certificates and giving information about such matters as the company's trade and capital structure.
• If on examining the statement HMRC is satisfied that it should do so, it will send the company the appropriate number of blank forms EIS3, using form EIS2 to authorise it to issue certificates.
• The company completes the certificates and sends them to the subscribers.
• Each subscriber - or, where the subscriber is a nominee, the beneficial owner of the shares - can then claim relief (see VCM25470 regarding claims to income tax relief and VCM36350 regarding claims to CGT deferral relief for shares issued before 6 April 1998 and VCM38500 for shares issued on or after 6 April 1998).

In cases where the subscription is made through an approved investment fund (see VCM21510) the company will send a form EIS3 to the manager of the fund, who will use it as his authority to send each participant in the fund form EIS5. Those participants can then claim relief.