EIS advance assurance

EIS Advance Assurance: What It Is and How to Get It

EIS advance assurance is a written confirmation from HMRC that a proposed share issue is likely to qualify for relief under the Enterprise Investment Scheme. It is voluntary and it is not a guarantee, but most angel investors and EIS funds expect to see it before they commit, because it removes the risk that the 30% income tax relief they are counting on will be refused. This guide explains what EIS advance assurance covers, how it differs from SEIS, who qualifies, and how long it takes.

What is EIS advance assurance?

Advance assurance is HMRC's view, given before you raise, that your company, your shares, and your planned use of funds meet the EIS qualifying conditions. It is separate from the compliance stage that follows: advance assurance happens before you issue shares, while the EIS1 compliance statement and the EIS3 certificates investors use to claim relief come after. Advance assurance is the document EIS investors and funds ask for when they are deciding whether to back you.

How EIS differs from SEIS

SEIS is for the earliest stage: companies trading for less than three years, raising up to £250,000 in total, with 50% income tax relief for investors. EIS supports larger, later raises. From 6 April 2026 the EIS limits expanded significantly: a company can raise up to £10 million a year and £24 million over its lifetime (£20 million and £40 million respectively for knowledge-intensive companies), and the gross-assets ceiling rose to £30 million before the share issue. EIS gives investors 30% income tax relief. Many founders raise SEIS first, up to the £250,000 cap, then move to EIS for follow-on rounds, and you can obtain advance assurance for both.

EIS qualifying conditions: does your company qualify?

To qualify for EIS, broadly, your company must (figures current from 6 April 2026):

• be within seven years of its first commercial sale (ten years for a knowledge-intensive company);
• hold gross assets of no more than £30 million immediately before the share issue, and no more than £35 million immediately after;
• carry on a qualifying trade, have a UK permanent establishment, and be unquoted (shares traded on AIM are acceptable).

A company can raise up to £10 million a year under EIS, and up to £24 million over its lifetime (£20 million and £40 million for knowledge-intensive companies). On the investor side, EIS gives 30% income tax relief on up to £1 million invested per tax year (or £2 million where at least £1 million goes into knowledge-intensive companies), plus capital gains deferral, capital gains exemption on the shares if held for at least three years, and loss relief. Some trades are excluded. The free eligibility check tests your company against every condition in about five minutes.

How to apply for EIS advance assurance

An EIS advance assurance application is a structured submission to HMRC's Venture Capital Reliefs Team, with a covering letter and supporting documents: typically your business plan, latest financials, a current structure chart, and details of the proposed raise. You can apply yourself, through an adviser, or through a platform. The two avoidable reasons applications stall are an incomplete submission and a covering letter that does not address HMRC's conditions directly.

How long does EIS advance assurance take?

HMRC's turnaround is typically four to eight weeks from a complete, correctly prepared submission, though it varies with HMRC's workload. An incomplete application is the main avoidable delay.

What does it cost?

A full advisory engagement for EIS advance assurance typically runs to around £2,500 plus VAT. Online legal platforms charge roughly £500 plus VAT on top of a subscription. Seisly prepares your complete application and drafts your covering letter for a flat £75, with no subscription, and can file with HMRC as your appointed agent for a fixed add-on. For genuinely complex structures, we refer you to a specialist adviser in our network.

Check whether you qualify, free

You can find out whether your company meets the EIS conditions in about five minutes, with no account and no email sign-up.