Income Tax Act 2007 section 204

Compliance certificates

Section 204 defines what an EIS compliance certificate is and sets out the rules governing its issue by a company to its investors.

• A compliance certificate (known as an EIS 3) is issued by the company to confirm that the requirements for EIS relief are for the time being met in relation to the relevant shares, apart from those the investor must satisfy
• Before issuing a compliance certificate, the company must first provide HMRC with a compliance statement covering the share issue that includes the relevant shares
• The company must not issue a compliance certificate without the authority of an HMRC officer, and if the company or a connected person has given notice under section 241 or Schedule 5B to TCGA 1992, fresh authority must be obtained after that notice is received
• When an HMRC officer decides whether to grant or renew authority to issue a compliance certificate, they must notify the issuing company of that decision