VCM14040 | Venture Capital Schemes Manual: the Enterprise Investment Scheme: EIS company procedures: company conditions to submit compliance statement

EIS: ITA07/S204 (2), S205

A company cannot submit a compliance statement until the trade (or the research and development activity) has been carried on for, at least, four months (see VCM12060), (see VCM13060 for the meaning of ‘qualifying trade’). However, the company does not need to have used all the funds raised from the share issue before it submits the compliance statement.

A company cannot submit a compliance statement after the later of the following dates:

• two years after the end of the year of assessment in which the shares were issued

• two years after the end of the period of four months.

A compliance statement can be submitted before the company has fully employed the money raised by the share issue (see VCM12050).

More than one share issue

If there is more than one share issue or shares of a different class are issued on the same day, the company must fill in a separate compliance statement form EIS1 (to access EIS1 see GOV.UK, HMRC’s website Guidance: Use the Enterprise Investment Scheme (EIS) to raise money for your company) in respect of each of the share issues. A company can undertake more than one share issue for each of the schemes – however the total amount of relief a company applied for cannot breach the appropriate limits for each of the schemes.