Enterprise Investment Scheme (EIS)
The Chancellor’s 2014 Budget announced changes to the Enterprise Investment Scheme. The changes apply to renewable energy projects qualifying for ROCs rather than the Feed in Tariff, and thus could apply to the Drumlin offer. However the changes will only apply from Royal Assent. For both 2012 and 2013, the date of Royal Assent was 17 July. We hope interested parties will apply for sufficient Drumlin shares (minimum capital sum £600,000) before the closing date, 30 April 2014, thus ensuring that the new Drumlin B shares will qualify for EIS tax relief, even with these proposed changes.
Meanwhile we are lobbying for community schemes, and particularly those in Northern Ireland, where there is no Feed in Tariff, to be excluded from these new rules. If you are interested in supporting this campaign, please contact the office.
The Drumlin Wind Energy Co-operative has received confirmation from HMRC that the A shares in Drumlin Wind qualify for EIS tax relief as two of the original wind turbines are now generating (and the others are expected to begin generating soon), members who are eligible under the scheme should receive 30% of the value of their investment back in the form of income tax relief. Since Drumlin is already trading, EIS Certificates should be issued in May 2014.
We are pleased to announce that HM Revenue and Customs has confirmed that the B shares under the new Share Offer by Drumlin qualify for relief under the Enterprise Investment scheme. As a B share investor in Drumlin Wind, you could be eligible to claim relief on your income tax. The relief is 30 per cent of the cost of shares, to be set against your income tax liability for the tax year in which the investment was made.
Claiming EIS Tax relief
Drumlin Wind will send you an EIS3 form which you will then submit to HMRC. The tax relief can be claimed against your Self Assessment tax return for the tax year in which the shares were issued or an adjustment to any Self Assessment payment on account due. You will have to make the claim itself on your tax return when you get it. If you pay your income tax through PAYE you can request a change to your tax code. Claims to relief can be made up to five years after the first 31 January following the tax year in which the investment was made.
For more information please visit www.hmrc.gov.uk/eis