Knowledge Base: Can you raise more than your SEIS/EIS Advance Assurance covers you for?

If you initially applied for SEIS/EIS advance assurance (AA) with a specific fundraising target and later decide to raise a different amount, you may wonder whether this impacts your ability to raise funds under SEIS/EIS. Here’s what startup founders need to know.

Key considerations when increasing your raise

1. Advance Assurance is not a statutory requirement

• SEIS/EIS advance assurance is not a statutory requirement, meaning you can still raise funds and investors can claim tax relief without it.

• However, almost all UK investors will expect to see AA in place before committing funds.

2. SEIS/EIS limits still apply

• The maximum you can raise under SEIS is £250,000.

• Any amount beyond this must be raised under EIS, which has a higher cap but different conditions.

3. HMRC vs investor perspective

• From HMRCs point of view SEIS and EIS advance assurance means, broadly, that HMRC have checked you are SEIS and EIS compliant.

• From an investors point of view, lots of them will accept that you have advance assurance as a result but some investors will want to see EIS covering your specific amount.

4. Compliance still matters

• Whether or not you have updated AA, you still need to submit SEIS1/EIS1 forms to HMRC after the raise to confirm eligibility.

• If there’s uncertainty, investors might delay committing until they have clarity on their tax relief.

What should you do if your raise changes?

• Small Increase (e.g., from £50,000 to £100,000 under EIS), you likely do not need to update AA.

• Substantial Increase (e.g., from £50,000 to £500,000 under EIS), consider reapplying for AA to reassure investors.

FAQs

I have £260k (SEIS/EIS) advance assurance but now I want to raise more?

As mentioned, from HMRCs point of view they have checked you are EIS compliant but some investors will want to see EIS covering the new, increased amount.

Can I apply for advance assurance retrospectively and then file an SEIS1?

You need to make sure you have advance assurance in place then you can apply SEIS retrospectively, see our investor guide here

Can my investor file an SEIS3 after the tax deadline?

An accountant can help but see our investor guide here

I have advance assurance for £300k for my first round but now want to raise another £300k, do I need to reapply?

Yes, you should reapply for advance assurance.

Does advance assurance expire?

Advance assurance doesn’t have a set expiration date.