Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of MRW, please enable cookies in your browser

We'll assume we have your consent to use cookies, so you won't need to log in each time you visit our site.
Learn more

FIT beneficiaries will be allowed to receive venture capital investment

The Government could scrap plans to prevent beneficiaries of the feed-In tariff (FIT) scheme from receiving venture capital investment from 2012, according to proposed exemptions outlined in a Treasury consultation.

According to an explanatory note in the Treasury’s tax-advantaged venture capital schemes consultation, the exclusion will not apply “where the energy is hydroelectricity or based on anaerobic digestion, or where the company is one of a number of specified types of social enterprise”.

The plans were first revealed in the 2011 Budget, which outlined proposals to “consult on options to provide further support for seed investment, simplification of the Enterprise Investment Schemes (EIS) rules by removing some restrictions on qualifying shares and types of investor, and refocusing both EIS and VCTs to ensure they are targeted at genuine risk capital investments”.

It added: “FIT businesses will be added to the excluded activities list.”

Speaking at the time, a Treasury spokesman told MRW that the FIT exclusion would not be part of the consultation and would have gone ahead in April 2012 subject to EU state aid clearance.

News of the exemption has been welcomed by Renewable Energy Association chief executive Gaynor Hartnell.

She said: “We’re very pleased the Government has listened. The proposed exemptions will allow community-based renewables projects to continue to benefit from FITs. It could never have been the Government’s intention to undermine these schemes, which have an important role to play in building community support for renewables. It’s a relief to see it is going to be rectified.”

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.