The Enterprise Investment Scheme (EIS) is a government initiative encouraging investment in small and medium-sized businesses.
It offers investors tax relief on their investments in exchange for backing these businesses. If you have invested in an EIS-qualifying company and wish to claim tax relief, there are several critical forms that you need to submit.
On the other hand, the Seed Enterprise Investment Scheme (SEIS) is a government initiative designed to encourage investment in early-stage companies. It offers investors significant tax breaks in exchange for backing these businesses.
If you have invested in a SEIS or EIS-certified startup and wish to claim tax relief, there are several necessary forms that you need to submit.
In this article, we’ll share with you what forms you must submit to file for an EIS or SEIS tax claim.
Essential Forms You Need To File An EIS Tax Claim
1. Form EIS3: Certificate of Qualifying Status
Form EIS3 is a certificate of qualifying status that confirms that the company you have invested in is eligible for EIS tax relief. The company must provide this form to you within two years of the end of the tax year in which you made your investment. You will need to submit this form with your self-assessment tax return.
2. Form SA100: Self-Assessment Tax Return
Form SA100 is a self-assessment tax return you must complete and submit to HMRC if you claim EIS tax relief. The tax return includes a section specifically for claiming EIS relief, where you must provide details of your EIS investment and the tax relief you are claiming.
3. Form EIS5: Confirmation of Receipt
Form EIS5 is a confirmation of receipt you should receive from the company you invested in. This form confirms that the company has received your investment and meets the EIS requirements. You must submit this form with your tax return as evidence of your investment.
4. Form EIS1: Application for Advance Assurance
Form EIS1 is an application for advance assurance that you can submit to HMRC to confirm that a company is eligible for EIS tax relief before investing. This form is not required to claim EIS tax relief, but it can help to speed up the process and provide peace of mind that the company you are investing in qualifies for tax relief.
5. Capital Gains Summary
Aside from being a legal requirement, the amount of tax relief you’re entitled to under the EIS scheme depends on the amount you’ve invested and the rate of income tax you pay.
However, it also considers any capital gains you’ve made during the tax year.
By submitting a Capital Gains Summary form, you can accurately calculate the amount of tax relief you’re eligible for, considering any capital gains you’ve made.
At the same time, you can carry losses forward to future tax years and offset them against any gains you make in the future.
Essential Forms You Need To File An SEIS Tax Claim
1. Form SEIS3: Certificate of Qualifying Status
Form SEIS3 is a certificate of qualifying status that confirms that the company you have invested in is eligible for SEIS tax relief. The company must provide this form to you within two years of the end of the tax year in which you made your investment. You will need to submit this form with your self-assessment tax return.
2. Form SA100: Self-Assessment Tax Return
Form SA100 is a self-assessment tax return that you must complete and submit to HMRC. This form includes a section specifically for claiming SEIS relief, where you must provide details of your SEIS investment and the tax relief you are claiming.
3. Form SEIS5: Confirmation of Receipt
Form SEIS5 is a confirmation of receipt you should receive from the company you invested in. This form confirms that the company has received your investment and meets the SEIS requirements. You must submit this form with your tax return as evidence of your investment.
4. Form SEIS1: Application for Advance Assurance
Form SEIS1 is an application for advance assurance that you can submit to HMRC to confirm that a company is eligible for SEIS tax relief before investing. This form is not required to claim SEIS tax relief, but it can help to speed up the process and provide peace of mind that the company you are investing in qualifies for tax relief.
5. Capital Gains Summary
Just like when filing for an EIS tax claim, you’ll need to submit your Capital Gains summary when filing for a SEIS tax claim.
Submitting a Capital Gains Summary form gives HM Revenue and Customs (HMRC) a complete picture of your financial situation. This enables them to verify that you’re eligible for the SEIS tax relief you claim while complying with HMRC regulations and potentially offset any losses you incurred this year.
File Your EIS or SEIS Tax Claim with Ease
Filing an EIS or SEIS tax claim requires the submission of several necessary forms.
By submitting these forms correctly, you can ensure that you receive the tax relief you are entitled to with your startup investment.
