SEIS / EIS through LLP

Enterprise_WarriorEnterprise_Warrior Yorkshire & HumberFMAAT, AAT Licensed Accountant Posts: 77
Hi

I am looking at setting up an LLP as an investment vehicle to invest in equity and debt opportunities. I will be a partner and a dormant Ltd Company will be the other partner.

Does anybody know if I can still claim SEIS / EIS through this method or can I only do this as an individual?

Thanks

EW
FMAAT, AAT Licensed Accountant and CIMA finalist

Comments

  • BertieBertie West Midlands Registered Posts: 376
    There are strict conditions that need to be satisfied, start with those first.

    It goes without saying, get advice from someone who has experience.

    For a broad understanding; refer to legislation and HMRC"s interpretation....
  • readerreader Experienced Mentor MAAT, AAT Licensed Accountant Posts: 1,038
    Assuming you are not setting up an approved EIS investment fund that is regulated by the FSA, then the answer is "No".
  • Enterprise_WarriorEnterprise_Warrior Yorkshire & HumberFMAAT, AAT Licensed Accountant Posts: 77
    The investments are EIS though. Individuals don't have to be FSA accredited so not sure why my own fund would need to be as I would be the only investor.
    FMAAT, AAT Licensed Accountant and CIMA finalist
  • Enterprise_WarriorEnterprise_Warrior Yorkshire & HumberFMAAT, AAT Licensed Accountant Posts: 77
    Would be easier to ask HMRC but they never give you a straight answer.
    FMAAT, AAT Licensed Accountant and CIMA finalist
  • readerreader Experienced Mentor MAAT, AAT Licensed Accountant Posts: 1,038

    read the guidance, or appoint someone who can be bothered to.

    +1

    The investments are EIS though. Individuals don't have to be FSA accredited so not sure why my own fund would need to be as I would be the only investor.

    "The investments are EIS though" - that was kinda obvious from your original post!

    "Individuals don't have to be FSA accredited" - individuals don't use LLP's!

    "Not sure why my own fund...." - It wouldn't be your fund, it would be your LLP's fund! Do you know about the separate legal entity concept? You are not sure because you haven't read the approved EIS investment fund guidance.
  • Enterprise_WarriorEnterprise_Warrior Yorkshire & HumberFMAAT, AAT Licensed Accountant Posts: 77
    I know the difference between a partnership and an LLP. I haven't read the EIS investment fund guideance hence the post on this forum. If somebody has experience of his, a response would be great.
    FMAAT, AAT Licensed Accountant and CIMA finalist
  • CasuCasu Registered, Users Awaiting Email Confirmation Posts: 102

    > @Enterprise_Warrior said:

    > Would be easier to ask HMRC but they never give you a straight answer.



    Nobody relies on HMRC for advice. Nobody.

    Totally agree! Especially not from the folk who answer the phone who have very little experience of anything and even less training!! Besides HMRC give 'guidance' and often interpret the law to suit themselves.
  • CasuCasu Registered, Users Awaiting Email Confirmation Posts: 102

    I know the difference between a partnership and an LLP. I haven't read the EIS investment fund guideance hence the post on this forum. If somebody has experience of his, a response would be great.

    Im flabbergasted! You havent read the guidance!!!!!!! Isnt that a wee bit lazy?

    But you expect someone to respond - what one line, or you want someone to go into the full regulations surrounding this issue for you? Not only that but there is a potential for a response from someone about whom you are able to verify their credentials and hence what they are saying is factually correct?

    If you havent read the guidance how would a poster who goes out of their way to help you know that you would read what they put?

    TBH - you post might be better off on Aweb, although I would suggest a little read up first.

    BTW - what is a CIMA finalist - just curious?
  • Enterprise_WarriorEnterprise_Warrior Yorkshire & HumberFMAAT, AAT Licensed Accountant Posts: 77
    I will ask the broker to answer my question. After all, that's what they are getting paid for by the companies seeking investment, to answer investor questions.
    FMAAT, AAT Licensed Accountant and CIMA finalist
    Casu
  • readerreader Experienced Mentor MAAT, AAT Licensed Accountant Posts: 1,038
    Casu said:

    I know the difference between a partnership and an LLP. I haven't read the EIS investment fund guideance hence the post on this forum. If somebody has experience of his, a response would be great.

    Im flabbergasted! You havent read the guidance!!!!!!! Isnt that a wee bit lazy?

    But you expect someone to respond - what one line, or you want someone to go into the full regulations surrounding this issue for you? Not only that but there is a potential for a response from someone about whom you are able to verify their credentials and hence what they are saying is factually correct?

    If you havent read the guidance how would a poster who goes out of their way to help you know that you would read what they put?

    TBH - you post might be better off on Aweb, although I would suggest a little read up first.

    BTW - what is a CIMA finalist - just curious?
    +1

  • readerreader Experienced Mentor MAAT, AAT Licensed Accountant Posts: 1,038

    Independent advice will still be required.



    The broker would throw their nan under a bus if it gets your investment.

    +1
    Casu
  • JayB2606JayB2606 StaffordshireFMAAT, AAT Licensed Accountant Posts: 36
    S157(1) Income Tax Act (ITA) 2007 provides that an individual (‘the investor’) is eligible for EIS relief in respect of an amount which he subscribes on his own behalf for an issue of shares in a company, if those shares are issued to the investor.

    So as a starting point, that requirement is not met in respect of shares held as partnership property and for that reason HMRC consider that EIS relief is not available on assets held via an LLP or any other type of partnership.
    ACCA, FMAAT, Licenced Accountant and ACCA Practising Certificate
  • AAT_TeamAAT_Team Administrator Posts: 519
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