Substantial interest An investor will be deemed to have a substantial interest in the company if they directly or indirectly own or are entitled to acquire more than 30 % of :
· the ordinary share capital of the company ; or
· the issued share capital of the company ;
· the voting power in the company ;
· the rights to the assets of the company in a winding up .
7 . Procedures Companies looking to take advantage of the SEIS will need to submit a compliance statement to HMRC . This statement is an application to HMRC for authority that the SEIS will apply . However , this statement cannot be submitted to HMRC until either 70 % of the money raised by the issue has been spent for the purposes of the qualifying business activity for which it was raised or the new qualifying trade in question has been carried on for at least four months .
It is therefore recommended that advance assurance should be secured from HMRC before the issue of any shares . The advance assurance application will allow HMRC to advise on whether or not the proposed share issue is likely to satisfy the conditions for SEIS .
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The information in this guide is correct at the time of going to press , but we cannot accept any responsibility for any loss occasioned to any person as a result of action or refraining from action as a result of any item herein .
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