By Michelle Thomas & Deneze
Hastings
EIS / VCT Schemes
Currently HMRC accept that a company whose main business is the
receipt of FIT payments is a "qualifying company" for the
purposes of these reliefs. However, it has been announced that
legislation will be introduced in the Finance Bill 2012 to state
that companies whose trade consists wholly or mainly in the receipt
of FIT payments (or similar subsidiaries) will only be eligible for
these schemes if the commercial electricity generation has begun
before 6 April 2012. Shares issued pre 23 March 2011 will not be
affected by these changes.
Where new investors wish to claim EIS / VCT relief on their
share subscriptions into solar companies those companies must have
started generating electricity pre-6 April 2012. It is not yet
clear whether a company which starts generating electricity pre-6
April 2012 will be affected if it starts generating electricity on
new sites post 6 April 2012.
