EIS and SEIS

Our client, a video conferencing group with main activities outside of the UK, was raising funds under a private placement. At the time the group would not have qualified for EIS due to the parent company being outside of the UK with UK activities undertaken by its UK subsidiary. We advised the client, obtaining clearance from HMRC on the basis that the UK subsidiary would hive up to the parent company prior to receiving investment. This involved reviewing all the relevant qualifying conditions including liaising with both the client and lawyers on the terms of shareholders agreement. We prepared a note detailing the benefits of EIS for the prospectus being sent to prospective investors and ensured the hive up was actioned correctly. The company was subsequently able to secure EIS for its investors on the £1.1m raised and we prepared the relevant paperwork, including the EIS1 forms and EIS3 certificates.