Income tax relief for investors in the Guinness Renewable Energy EIS has fund has increased from 20% to 30% in accordance with changes announced in last week’s Budget statement, effective from 6 April 2011. All investors in the fund can benefit from this increased rate once the fund is invested. This increase means that for most investors EIS now has more attractive tax reliefs than VCTs.
Companies accredited for Feed-in Tariffs after 6 April 2012 will be excluded from qualifying for EIS. As a result there is now a unique window of opportunity to combine Feed-in Tariffs and EIS tax reliefs (at the increased rate) that will last until 6 April 2012.
Thanks to the fund’s diversified investment strategy and large pipeline of potential investments, it expects to be fully invested in renewable energy generating companies that are operating and Feed-in-Tariff accredited prior to 6 April 2012.
Shane Gallwey, Investment Manager, says: “We are delighted that George Osborne has raised the Income Tax Relief for investors into EIS qualifying companies to 30%. This has made the tax reliefs available under EIS significantly more attractive than those available to investors in Venture Capital Trusts. Companies accredited for Feed-in Tariffs before April 2012 will be eligible for EIS tax reliefs, giving us a clear timeframe for investing the Fund in solar (under 50kW), wind and hydro projects. As a specialist energy investor, Guinness Asset Management is exceptionally well placed to make the most of this compelling opportunity.”