Letter of Engagement for Advance Assurance Applications

If you're applying for Advance Assurance and your proposed investors are Crowdfunding platforms, investment funds or Nominee vehicles rather than individual investors, HMRC requires a Letter of Engagement.

A Letter of Engagement, sometimes referred to as a Letter of Intent, is used to show that there is genuine interest in investing in your company. It helps demonstrate to HMRC that you are not submitting a speculative application and that there is a realistic prospect of investment if the company qualifies.

The letter should come from the investment fund and confirm that it is considering an investment in the company. Although it isn't a commitment to invest, it provides HMRC with evidence that discussions are taking place and that the fund is interested in the opportunity.

To be accepted by HMRC, the letter should:

• Be dated.
• Be addressed to the company applying for Advance Assurance.
• Be signed by a representative of the investment fund / Crowdfunding platform / Nominee vehicle.
• State the amount the fund is considering investing.

Providing a Letter of Engagement is an important part of the Advance Assurance application process when your proposed investors are investment funds. If you do not provide one, HMRC may not be satisfied that there is genuine investor interest in the company, which could negatively impact the eligibility of your application.