Does EIS or SEIS advance assurance approve your valuation?

No. HMRC’s advance assurance guidance concerns whether a proposed investment may meet certain scheme conditions. It is not a general endorsement of the investment, and it does not confirm an individual investor’s eligibility.

A founder therefore needs to distinguish two conversations: whether the proposed investment fits the relevant scheme requirements, and whether the commercial price is supported by the business and the terms. An assurance letter does not replace the second conversation.

Our valuation work focuses on the financial assessment. Responsibility for eligibility, legal terms, applications and subsequent compliance should be allocated with your advisers when the engagement is scoped.

What EIS and SEIS valuation support can cover

The proposed share price

Explain the relationship between the company valuation, the shares being issued and the amount of new investment.

Evidence behind the range

Assess the business stage, financial information, growth assumptions and relevant market evidence rather than applying a universal startup multiple.

Ownership and dilution

Show the ownership consequences of the stated assumptions, including any option pool or existing instruments that the scope needs to consider.

The output can be scoped as a valuation report or explanatory valuation memorandum for an agreed use. The engagement defines the analysis, assumptions and follow-up included; it does not promise to secure investors.

Why scheme limits are not company valuations

A rule about the amount that may qualify under a scheme does not tell you the market value of the company. Likewise, the amount you want to raise does not establish what investors should pay for the shares.

HYPOTHETICAL COMMERCIAL EXAMPLE

If £200,000 is invested for 10% of a company immediately after a simple new-share issue, the implied post-money equity value is £2 million. The implied pre-money value is £1.8 million.

That arithmetic is not evidence that £1.8 million is the appropriate value. It assumes no other changes to shares or rights and says nothing about whether the investment qualifies for SEIS or EIS.

Use the calculation to describe a proposal, then test the proposal against the business. For a deeper look at the transaction, see fundraising valuation support.

What to prepare for an EIS or SEIS valuation discussion

  • A short explanation of the business and its current stage.
  • The proposed investment amount and intended use of the money.
  • The current cap table, relevant share rights and proposed changes.
  • Accounts or management information available, plus the assumptions behind forecasts.
  • Evidence of traction, distinguishing paying customers from pipeline or expressions of interest.
  • The status of scheme advice and any advance assurance process.

This is our valuation scoping checklist, not a substitute for HMRC’s application requirements. Keep the assumptions consistent across your pitch, financial model and proposed ownership schedule so the discussion does not rely on conflicting versions.

How we approach a business with little trading history

For a very young business, evidence may be uneven. A working product, customer conversations and a first paid pilot provide different kinds of information. A valuation should explain what each supports and what remains uncertain.

We can discuss a method suited to the stage and available evidence, with scenario analysis where appropriate. A precise-looking forecast should not conceal the uncertainty of reaching the next milestone. Read the early-stage and pre-revenue valuation guide for the evidence to prepare.

Agree a fixed scope before the work begins

Tell us whether the immediate need is a valuation for investor discussions, an explanation of dilution or coordination with your scheme advisers. We can then define the information required and the proposed output.

Fees and timing are agreed individually. Any application support or specialist tax work must be explicitly included rather than inferred from the page title. The valuation costs guide explains what to compare in a proposal.

Your questions, answered.

Is an EIS or SEIS valuation the same as advance assurance?

No. Valuation addresses commercial value and share pricing. Advance assurance concerns certain scheme conditions on the submitted facts and is not an endorsement of investment performance.

Do I need a formal valuation report for every EIS or SEIS round?

The appropriate work depends on the circumstances, intended users and requirements of your advisers or investors. We do not claim that every round requires the same report.

Will you guarantee that my investors receive tax relief?

No. Scheme and investor conditions must be assessed separately by the responsible advisers. A valuation does not guarantee tax relief.

Can you help with a SEIS raise before we have revenue?

Yes, a valuation scope can be discussed for a pre-revenue business. The method, evidence and uncertainty need to reflect that stage.