Back in the Autumn Statement of the Chancellor of the Exchequer it was announced that tax relief for investors in renewable energy would be phased out with the end of the tax year.
This was a great concern for community energy organisations such as ours, who rely on attracting investment from our new members. Obviously a loss of a tax incentive would reduce the attractiveness of becoming a member of a community energy group and invest in renewable community owned energy generation.
But the latest Budget of 2015 has some positive news for us:
2.77 Venture capital schemes: renewable energy – As announced at Autumn Statement
2014, companies benefiting substantially from subsidies for the generation of renewable energy
will be excluded from also benefiting from EIS, SEIS and VCTs with effect from 6 April 2015,
with the exception of community energy generation undertaken by qualifying organisations
which will in future become eligible for the Social Investment Tax Relief (SITR). The government
will allow a transition period of 6 months following state aid clearance for the expansion of SITR
before eligibility for EIS, SEIS and VCT is withdrawn. (Finance Bill 2015) (y)
This means that investors will still be able to claim tax relief under SEIS (Seed Enterprise Investment Scheme), but only through investing and becoming part of qualifying community energy generation. In the future SEIS and EIS will be replaced with SITR (Social Investment Tax Relief)
And there is no better time than now to join our growing membership and invest in renewables through our pioneer share offer.