Rejected SEIS Advance Assurance Application - Solved

I've written previously about the problem that some startups can encounter when they purchase IP with a view to developing it to sell in the form of licence or royalty fee income (most typically, software).

I won't rehash the technical rules here (see below), suffice to say that this set-up does not always 'play nicely' with the SEIS and/or EIS tax reliefs.

I recently advised on this matter with a startup company who had suffered this exact problem and received a knock-back from HMRC on their SEIS advance assurance application.