VCM21020 - EIS: general: procedure: requests for advance assurance: information needed

In order to give an assurance the HMRC officer will need to be satisfied that:

• the company can be expected to be a qualifying company (see VCM20500),
• the shares to be issued will be eligible shares (see VCM12010),
• the shares are to be issued to raise money for a qualifying business activity (see VCM12060),
• the money raised is to be employed only by companies that satisfy the rules of the scheme (see VCM12100).

When making its request for an assurance the company may supply primary facts or broad statements (such as, ’the shares to be issued will be eligible shares'). However, no assurance is given unless the information supplied includes all the following:

• a copy of the latest available accounts of the company, and of any subsidiary company,
• details of all trading or other activities to be carried on by the company and any subsidiary, and a note of which company or companies will use the money raised,
• the approximate sum the company hopes to raise, and how it will be used,
• confirmation that the company expects to be able to complete the declaration on form EIS1 in due course,
• a copy of the latest draft of any prospectus or similar document to be issued to potential investors,
• an up-to-date copy of the Memorandum and Articles of Association of the company and of any subsidiary, and details of any changes to be made,
• details of any subscription agreement or other side agreement to be entered into by the shareholders.

(It is not necessary for the company to send any document that has already been sent to HMRC on some earlier occasion.)