SIES and EIS – be careful of the seven year rule

We all agree that SEIS and EIS are great when you are raising investment for a company. But the seven year rule catches people out. If you are issuing shares and want them to qualify for EIS tax relief for your investors and the company has been around for seven years or more, check this out.

To qualify, the company must issue the shares within 7 years of its first commercial sale. This can be extended to 10 years for what HMRC call a “knowledge intensive company”. Look at the detailed rules here.