Following our earlier posts about the Enterprise Investment Scheme, please find below HMRC’s response dated the 11th  of January 2019.

Dear Sir

I apologise for the delay in replying which has been caused by Ms xxx being away from the office and indeed she is not expected back until next month.  I have been asked to review your submission which I am in the process of doing so. 

The issue revolves around the new legislation which came into force in March 2018 which my colleague referred to in her letter of 15 October 2018 and whether or not the company can meet the new risk to capital condition in S157A Income Tax Act 2007.  I appreciate that your company is in fact a Community Benefit Society but for the purposes of the legislation it is considered to be a company which is why I, and previously my colleague, have to refer to it as such, I hope you appreciate this.

Currently the situation is being considered by our senior technical colleagues as to whether or not the change of legislation means that the company no longer qualifies, I realise that this is taking a while but as with a lot of changes in legislation individual cases must be considered in detail.  However as previously mentioned your case is currently being considered and I would hope to be able to respond to you in the next week or so.

Regards

Venture Capital Scheme Specialist

Venture Capital Reliefs Team

WMBC

BX9 1BN