In yesterday’s Budget, the Government announced that it will no longer be possible for companies which derive revenues from Renewable Obligation Certificates (‘ROCs’) to qualify for the Enterprise Investment Scheme (‘EIS’). The change will take effect in the summer, when the new Finance Bill comes into force.
There are three important points to note at this stage:
- There is still time to make a renewable energy EIS investment in this tax year. The Oxford Capital Infrastructure EIS will remain open for investment, and we plan to invest all subscriptions received on or before 1st April by 3rd April. We anticipate there will be further closes between 5th April and the introduction of the Finance Bill, subject to capacity.
- The changes to the rules are not retrospective. All renewable energy EIS investments made prior to 5th April 2014 will be unaffected. EIS reliefs will not be withdrawn.
- The growth-focused Oxford Gateway EIS Portfolio remains entirely unaffected by this news.
We will be posting further reaction to the news soon. Please do not hesitate to contact us on 01865 860 760 if you have any concerns would like to discuss further.
- An investment should only be made on the basis of the formal Information Memorandum of each fund.
- Your capital is at risk and you should not invest if not willing to bear this risk.
- Tax advantages are summarised based on current legislation, which may be subject to change in the future.