Impact Investing: doing well by doing good
10 July 15
10 July 15
All of Triple Point’s products provide funding to UK SMEs and infrastructure and, following the Summer Budget, we are pleased to note that the Government has reiterated its focus on encouraging enterprise and stimulating the provision of finance for SMEs.
We have prepared a brief summary below of the changes that relate to Triple Point’s range of tax-efficient products and services.
Changes to Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) legislation
The Government has proposed a number of changes to the legislation governing EIS and VCT investments. We await publication of the draft legislation but at this point we do not expect the announced changes to have a significant impact on our EIS and VCT offers for this year, or our existing products.
Changes to the Climate Change Levy (CCL)
With effect from midnight on 31 July 2015, electricity generated from renewable sources will no longer be eligible for the CCL exemption for electricity when supplied under a renewable source contract – these are called Levy Exemption Certificates (LECs).
The LECs form a small component of the overall income earned by the Hydro, Solar and Landfill Gas companies we have arranged funding for. We are carrying out a comprehensive analysis of the effect on each company and expect to write to affected shareholders within the next two weeks.
Changes to Inheritance Tax/Business Property Relief
The Summer Budget brought changes to inheritance tax. As at April 2017, each individual will be offered a family home allowance. This allowance will be added to the existing £325,000 inheritance tax nil-rate band. By 2020-21, the total tax-free allowance for surviving spouses or civil partners will be up to £1million. The allowance will be tapered for estates worth more than £2million.
We will continue to engage constructively with HMRC to gain clarity on the details of these changes to ensure we provide our current and future investors with tax-efficient investment products that meet their changing needs.