Law firm Howard Kennedy has acted on the launch of existing client Guinness Asset Management’s (GAM) fourth enterprise investment scheme: Guinness EIS 4.
Guinness EIS 4 provides investors with access to investment opportunities in the renewable energy and energy efficiency sectors in the UK.
Investment in the scheme will allow investors to take advantage of the tax breaks under the EIS. The scheme closes to investment opportunities on 31 December 2012.
For investment in to the renewable energy sector, GAM has identified opportunities in the following areas: smaller scale hydropower and anaerobic digestion projects; projects that benefit from renewable obligation certificates (i.e. solar photovoltaic installations); and projects that turn biomass in to a source of energy (i.e. to provide heat, electricity or transport fuel). In terms of the energy efficiency sector, the following have been identified: lighting and appliances; heating and cooling; process efficiency; and insulation.
Enterprise investment schemes provide investors who are UK tax payers with tax incentives when they choose to invest in EIS qualifying companies through income tax relief, CGT free disposal, loss relief and inheritance tax relief.
Guinness EIS 4 builds on Guinness EIS 1, Guinness EIS 2 and Guinness EIS 3 that closed respectively in June 2011, March 2012 and June 2012. Terms have been agreed on investments to be made from Guinness EIS 3 in two companies which are expected to raise capital in Q1 2013. Howard Kennedy acted for GAM on all four launches and corporate partner Keith Lassman (pictured) led on all the transactions.
Lassman says: “We are delighted to act, yet again, for existing client Guiness Asset Management who have demonstrated great commitment and expertise in this area. Enterprise Investment Schemes provide lucrative investment opportunities for UK tax paying investors. Guinness EIS 4 is building on the successes of Guinness Asset Management’s other offerings and is investing in sustainable energy companies which have long term, stable cashflows and which qualify for EIS relief. As we know, investment in to sustainable energy is an investment in to our future and is fast becoming an important area to focus on. That aside, investment in to small UK companies, which this scheme will provide, is increasingly important to stabilise the UK economy.”