The investor’s field guide · A
Advance assurance
An HMRC indication about specified company and share-issue conditions for a proposed UK venture capital scheme investment.
Explained by the editorial team
Advance assurance is a service through which HMRC may give an opinion on certain conditions for a proposed investment under UK venture capital schemes. It is based on the information supplied. It is not a guarantee of tax relief for any particular investor.
How to read it
A company may show an assurance letter while raising investment. Check which scheme, facts and proposed issue it covers, and whether anything material has changed. The company still has subsequent compliance steps, and investors have their own conditions to satisfy.
What it does not mean
HMRC is not endorsing the company’s commercial prospects, valuation or management. An assurance letter does not remove the possibility of total loss or make the shares easy to sell. Treat tax eligibility and investment quality as separate questions. Read HMRC’s explanation of the service and obtain independent tax advice before relying on a proposed relief. Current procedures and requirements should always be checked at the source.
General information, not investment, legal or tax advice. Examples are illustrative. Read the disclaimer.