SEIS clarification

We have been discussing with HMRC the rules for the Seed Enterprise Investment Scheme (SEIS) and have been advised by them that our interpretation of the way we intended to implement them does not meet their requirements. We had modelled our approach on what we understood about similar schemes which have also raised funds using SEIS.

Although EIS is still applicable, unfortunately we have had to decide we cannot go ahead with the SEIS arrangements, which could have benefited a minority of investors who got their applications in very early.

SEIS was only introduced last year so there is not yet a lot of experience in its use. It turns out that to use it we would have been required to spend 70% of the funds raised using SEIS before proceeding with the EIS.

Practically this means we cannot include both SEIS and EIS at the same time, since we need to raise the full amount before we can place the contract for the hydro plant. Reluctantly therefore, we have decided that we cannot pursue the SEIS route.

To SEIS applicants, we can only apologise for any disappointment we have unwittingly caused. If you had hoped to take advantage of SEIS and prefer to have your cheque returned, please let us know. We still believe the 30% tax refund is very worthwhile