Income Tax Act 2007 section 257ED

Compliance statements

Section 257ED defines what a compliance statement is for the purposes of the Seed Enterprise Investment Scheme (SEIS), sets out the conditions that must be met before such a statement can be made, and specifies the information it must contain.

• A compliance statement confirms that the SEIS relief requirements (excluding those dependent on the individual investor) are currently met and have been met continuously since the shares were issued.
• The statement cannot be made until either at least 70% of the money raised by the share issue has been spent on the qualifying business activity, or the new qualifying trade has been carried on for at least four months.
• The statement must be in the form directed by HMRC, must specify which of the qualifying conditions has been met, and must include a declaration that the statement is correct to the best of the issuing company's knowledge and belief.
• HMRC may also require the company to provide additional information — including details of persons who have requested compliance certificates — and to make such other declarations as HMRC reasonably requires.