Change is often greeted with fear and trepidation. This was certainly the case when HM Revenue & Customs announced changes to the qualifying rules for EISs that came into force recently and it's easy to see why.
The updated qualifying rules mean EIS managers can no longer invest in more established companies (those older than seven years or ten years for 'knowledge-intensive' firms) or fund replacement capital, but the major change is the ineligibility of subsidised energy firms such as those investing in wind or solar. The latter is significant as, built on such assets, the EIS market had expanded beyond recognition in the years prior. In 2010/11, EIS investment was c£600m. In the final year of renewable energy investment (2015/16), this had trebled to around £1.8bn. These changes to EIS rul...
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