All VCT, EIS, SEIS, and Business Relief qualifying investments are high risk and are not suitable for most clients. They are illiquid investments and Investors’ capital is at risk.

Last chance to invest in Solar and Wind EIS: HMRC clarifies proposed regulations

Do you have clients who fall into any of the following categories:
  1. incurred a capital gain since July 2011
  2. expect to incur a gain in the next 12 months
  3. wish to reduce their potential IHT
  4. cannot make further pension contributions
  5. want to invest in EIS for one of the hundred or so other reasons that exist

If so, there are now an estimated 61 days to go until Royal Assent takes the Renewable Energy EIS gravy train out of commission for good.  In reality that is just 37 business days left and many of your clients will be on holiday at some point during that period.  Act now before it is too late.

HM Treasury issued fresh guidance on the proposed changes

Yesterday, HM Treasury issued some fresh guidance on the proposed changes to the regulations which can be found by following this link.  To summarise, the following applies:

1. In order to qualify for EIS relief, shares will have to be fully paid and allotted in the EIS qualifying company prior to the date of Royal Assent
2. The EIS company will then have 2 years in which to spend its money

HMRC also qualified the trades which will be in scope and those which will not.  Broadly, the new regulations are following the model that was adopted when FITs were removed in 2012: namely that Anaerobic Digestion and Hydro Electric power will continue to qualify for EIS relief.
Kuber has secured capacity with two highly regarded managers in this sector – Deepbridge & Guinness. These managers have been selected following a rigorous due diligence process, and together provide investors with a diversified approach across both manager and sector (wind & solar)

We are seeing strong demand for both of these funds and we recommend that individuals wishing to take advantage act sooner rather than later.
Both Managers have:

  • Strong experience and management expertise in the renewable energy arena, as well as a very strict due diligence process
  • All projects have mitigated risk by ensuring that planning and grid connection has been obtained prior to investment.
  • HMRC prior approval obtained
  • Ensured that investments will be made in projects which are already generating power which means no risk of investment slippage past Royal Assent plus early production of EIS3 certificates

In addition both managers target attractive returns for investors over a 3 year period of 135% (Deepbridge) and 120% (Guinness).