We have been very busy with installation works on site – foundations have now been poured and we’ve paid a second installment to the manufacturers so the turbines are on their way over from Germany ready to install once the concrete has set.
Meanwhile there has been a bombshell from Government which means that anybody wishing to join Heartland Community Wind needs to act now.
The treasury have announced that community energy projects will be ineligible for the tax reliefs of SEIS, EIS and the replacement SITR from November 30th 2015 (where they are also in receipt of FIT or ROCs etc).
This does not affect any existing shareholdings or applications with us.
This change has come with no warning and was announced directly to the House of Commons this week as an addition to the Finance Bill which is currently progressing through Parliament. Community energy advocates around the country have been taken aback by this unexpected statement, the speed with which changes are being made, and the reversal of earlier announcements on the intention to replace EIS with SITR. There appears to be no mechanism to challenge this decision.
This means that if you wish to join us or make a further investment you need to do so as soon as possible to ensure you can claim the tax relief. We are urging members new and old to take this opportunity to benefit from tax relief while it lasts and help the project meet its share offer target swiftly.
What this means in practice
Share offer closing date
The current share offer will close by the latest on 20th November – or sooner, if fully subscribed. This allows time for the process needed to issue share certificates with a date on or prior to 29th November.
Should the offer not be fully subscribed by 20th November, it will close on that date and shares will be issued, as described above, to all applicants to ensure the tax relief remains available. A new share offer will then be subsequently opened to raise the outstanding funds, which will not offer tax reliefs.
Social Investment Tax Relief
Future share offers are anticipated to be gravely affected with this announcement that SITR will no longer be coming in to replace EIS and SEIS. This is a change to previous announcements on SITR and EIS and a severe blow to the community energy industry as a whole.
What this means for you
If you wish to buy further shares and benefit from the tax reliefs currently available, you have a limited window to do so.
Please remember that the relief can be claimed against tax owed in the tax year in which the shares are issued and the previous tax year. You can also split your claim across the two tax years, to maximise your ability to claim.
If you wish to buy more shares, please submit your application and make the payment as soon as possible. The payment must clear in our account by 20th November, to ensure you will be able to claim the tax relief. We will ensure cheques are paid in on the day they are received and we will contact you within 2 working days if an application is received and no corresponding transfer is also received.
Support the project
We hope you will take this opportunity to help us raise all the funds remaining in the project by this deadline. Please also let your friends and family know about this opportunity to get some of the last tax relief available for community energy. Feel free to spread the word on any social media which you may use.
You are of course welcome to contact Sharenergy on 01743 277119 if you have any questions about this update or our share offer.