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Autumn Statement: Govt confirms renewable energy ban for VCTs

Autumn Statement: Govt confirms renewable energy ban for VCTs

Renewable energy projects will be excluded from venture capital trusts (VCTs) it was confirmed today as the government issued its Autumn Statement.

Earlier in the year the government had stated its intention to review the use of VCTs, enterprise investment schemes (EIS) and seed enterprise investment schemes (SEIS) to invest in renewable energy projects.

These structures will be banned from investing in renewable energy projects from 6th April 2015.

The Treasury wrote: 'All community energy generation undertaken by qualifying organisations will be eligible for social investment tax relief (SITR) with effect from the date of the expansion of SITR, at which point it will cease to be eligible for the EIS, SEIS and VCTs.

'All other companies benefiting substantially from subsidies for the generation of renewable energy will be excluded from also benefiting from EIS, SEIS and VCTs.'

 

The government will also consult on the introduction of a social venture capital trust within a future finance bill.

AIC director general Ian Sayers said: 'The government has previously indicated that it would look closely at situations where economic activity might benefit from more than one set of tax reliefs or other government support. 

'This appears to be part of this process and the AIC will consider carefully whether these new rules are appropriate.'

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