Budget suits EIS funds

In Wednesday’s budget George Osborne raised the Income Tax Relief for investors into EIS qualifying companies from 20% to 30%. Investment rules for both enterprise investment schemes and venture capital […]

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By Tom Gibson

In Wednesday’s budget George Osborne raised the Income Tax Relief for investors into EIS qualifying companies from 20% to 30%.

Investment rules for both enterprise investment schemes and venture capital trustshave been relaxed in a bid to attract more investment to smaller companies.

Shane Gallwey, Investment Manager at Guinness Renewable Energy EIS Fund, said: “We are delighted. This has made the tax reliefs available under EIS significantly more attractive.”

The Guinness Renewable Energy EIS Fund has welcomed the fiscal changes, which they say will be good for business.

Tom Hill-Norton, a partner at the company said: “A lot of people were waiting to see what came out of the budget. It has since made the fund much more attractive and shortened the period of opportunity.”

According to Mr Hill-Norton, the changes bring about a unique opportunity to combine FITs and EIS tax reliefs.

The fund is focused on wind, hydro and roof-mounted solar PV ( less than 50kWp) opportunities in the UK, which are not the subject of DECC’s fast track tariff review.