HMRC has published new guidance in respect of changes it is making to to help manage applications for advance assurance and Enterprise Investment Scheme (EIS) compliance statements from companies for investments made on or after 6 April 2015.
 
With immediate effect, HMRC will no longer process advance assurance applications in respect of companies that, in general:

• are more than 7 years old and have not received a risk finance investment in the past
• have received more than £10 million risk finance investment funding that fall outside certain limits.

In order for investors to be able to claim EIS tax reliefs, the company which issues the shares has to meet a number of rules regarding the kind of company it is, the amount of money it can raise, how and when that money must be employed for the purposes of the trade, and the trading activities carried on.

There are also similar measures that have been introduced in respect of Venture Capital Trusts (VCT). These changes could affect the qualifying status of investments made by VCTs on or after 6 April 2015.