SEIS share issue

Is it possible to backdate SEIS application

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Hi,

A client has been in to discuss a potential SEIS investment. The individual has invested into a friends business approximately £25000 up to 1st January 2019 allowing the business to purchase various equipment to trade. In addition, he has lent the business a further c£25000 since to allow the business to continue to trade. The client has discussed converting the £25000 initial investment into shares and asked as to whether these would qualify for SEIS relief. As far as I can see there are several obstacles to this, mainly that the investment was not a share purchase at the time and a Confirmation Statement has been subsequently filed without any share issue on. In addition, the company has only issued 100 subscriber shares and so a £25000 investment would not fall in late with a <30% ownership. 

Is my understanding correct or are there any circumstances where the client may be able to qualify for SEIS relief?

Thanks in advance.

Replies (2)

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By Duggimon
11th Mar 2020 16:17

What was the investment if not a share purchase? You distinguish between a £25,000 initial investment and a further £25,000 loan, but it's not clear what the investment is if not either for shares or also a loan.

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By possep
12th Mar 2020 09:15

https://www.gov.uk/guidance/venture-capital-schemes-apply-to-use-the-see...

Sound like loan rather than a subscription for shares

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