VCM60330 - Venture Capital Schemes Manual: venture capital schemes: the Social Investment Tax Relief: advance assurance requests: information needed

In order to give an advance assurance, the social enterprise must be a qualifying social enterprise meeting all the conditions.

The social enterprise must disclose all the relevant facts and supporting documentation that might affect their eligibility under the scheme. The relevant information must be fully signposted in order to manage demand for the advance assurance service.

Confirmation that the social enterprise expects to be able to complete the declaration on the Compliance Statement form VCSSITR1 in respect of the proposed investment, or details of why the social enterprise is unable to do so.

Social enterprises should ensure that they are aware of all of the qualifying conditions of the scheme and provide any further information they think may be necessary to allow the officer to consider whether all the requirements are likely to be met for advance assurance

Any assurance supplied to a company is given only on the basis of the information provided, see VCM60050. HMRC does not generally check the accuracy or completeness of the information. It is the social enterprise’s responsibility to ensure it meets the scheme rules and provide statements and evidence supporting its view that the company is eligible to receive investment under the scheme. HMRC will highlight any obvious errors otherwise HMRC will generally accept what is said in the application. Unless a social enterprise has identified particular conditions that may be in doubt.

An advance assurance based on limited disclosure will not be valid and investors cannot rely upon such an advance assurance when deciding whether to invest in a social enterprise. An investment reliant on an advance assurance based on inadequate disclosure cannot be assumed to be a qualifying social enterprise.

Where a social enterprise flags an area of doubt the HMRC officer may ask further questions, or decline to provide an opinion if the information supplied is not sufficient to form an opinion.