Renewables No Longer Permitted in VCTs

Venture Capital Trusts and Enterprise Investment Schemes are no longer allowed to benefit from the double tax relief afforded by investing in renewable energy

Emma Wall 19 March, 2014 | 4:23PM

Investors can no longer double up on tax benefits, the Chancellor has ruled in today’s Budget report.

Venture Capital Trusts (VCTs) and Enterprise Investment Schemes (EISs) investing in renewable energy were cashing in subsidies and tax benefits of Renewables Obligation Certificates and/or Renewable Heat Incentive schemes. These were then being passed onto investors, alongside the income and capital gains tax allowances of investing in VCT and EIS schemes.

“To better target high-risk investment the Government will change the eligibility criteria of venture capital schemes to avoid subsidising low-risk activities that already benefit from certain government programmes,” stated the full report.

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Emma Wall  is former Senior International Editor for Morningstar

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