Income Tax Act 2007 section 205

Compliance statements

Section 205 defines what a compliance statement is for EIS purposes, sets out its required contents, and specifies the time limits within which a company may provide one to HMRC.

• A compliance statement (commonly known as form EIS 1) is a declaration by the issuing company that the EIS eligibility requirements are currently met and have been met at all times since the shares were issued, aside from requirements that fall on the individual investors themselves.
• The statement must follow the format directed by HMRC and include any additional information HMRC reasonably requires, particularly details of persons who have requested compliance certificates.
• The statement must contain a declaration that it is correct to the best of the issuing company's knowledge and belief, along with any other declarations HMRC may reasonably require.
• The company cannot submit a compliance statement before the relevant trade has been carried on for at least four months, and must submit it no later than two years after the end of the tax year in which the shares were issued (or two years after the four-month trading requirement is first met, if that is later).