Securing approval from HMRC to SEIS/EIS relief

From Gordon Pratt, CEO

About Thames Gateway Tramlink

We, at Thames Gateway Tramlink, are very proud to be working on the KenEx Tram proposal. This exciting new project will provide an accessible, sustainable, public transport link between North Kent and South Essex, generating significant economic benefits to the area whilst also tackling increasing levels of road congestion. Furthermore, the project supports the increasing pressure for sustainable “Net Zero” transport solutions to combat pollution. www.kenextram.co.uk

KenEx Tram is a sustainable public transport proposal situated in the heart of The Thames Estuary Growth area.

The core tram proposal

The core tram proposal connects Gravesend, Ebbsfleet and Grays, creating an integrated and enhanced local economy transforming connectivity to a level never enjoyed before by communities either side of the Thames. We have already been asked to provide input on further tramway development within the area.

Our aim is to provide sustainable public transport infrastructure that supports residential developments either side of the Thames with excellent connections to places of work, recreation, retail and health facilities – key enablers for estuary growth expected over the next 30 years.

The Brief

Gannons were instructed to assist in obtaining advance assurance for investors into the Company to be able to benefit from SEIS/EIS Relief.

What challenges (if any) did you face?

We wanted to ensure that our early stage investors could obtain SEIS/EIS relief to maximise the project’s chances of success, Gannons were able to navigate us through the rules and thresholds to ensure we could (as much as possible) achieve our SEIS/EIS aims.

We had a number of investors who were putting money in upfront and then paying the remainder of such funds upon SEIS/EIS clearance, to ensure that such monies were not disqualified. Gannons proposed advance subscription agreements to protect the SEIS/EIS status whilst clearance was obtained. We were glad to have Gannons on-side given the complicated rules and disqualifying events surrounding SEIS/EIS and particularly advance subscription agreements.

From a corporate perspective

From a corporate perspective, Gannons also dealt with our Articles and Shareholders’ Agreement to ensure that we had appropriate protections in place regarding, for example, the transfers of shares, pre-emption rights and permitted transfers but also so that all Founders were in complete agreement regarding the running of the Company moving forward, before making their investments.

What would you say about working with Gannons?

Gannons were responsive, efficient and supportive. We were extremely pleased to have them on side guiding us through the process.  They took the time to really understand our needs and provide the appropriate advice and support to achieve our ambitions.  They have in-depth knowledge of the SEIS/EIS schemes, its rules and trip wires, providing a complete professional corporate service.