SEIS and EIS require a UK establishment or qualifying UK permanent establishment.

Both schemes are aimed at unquoted companies and there must not normally be arrangements to become quoted.

Examples include certain financial activities, property development, legal or accountancy services, leasing and some other excluded trades.

This is particularly important for SEIS, which is focused on a new qualifying trade.

The schemes are intended to support genuine long-term growth and development.

Funding should be used for a qualifying trade, preparing to trade or qualifying R&D, rather than buying another business or non-qualifying assets.

EIS generally requires money to be employed within 2 years, while SEIS allows up to 3 years.

There should not be arrangements that protect the investor from normal commercial risk or guarantee an exit.

Share rights and investment documents can affect relief, so the final structure should be checked before issue.

HMRC may expect a business plan, financial forecasts, latest accounts, articles, fundraising materials and details of previous risk-finance investment.

Advance Assurance applications normally need to show that the company is genuinely seeking investment.