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There is considerable interest in Solar Energy Investments at the moment. Unlike many "flavour of the month" investments, there is genuine reason to be excited by this investment opportunity because of two significant elements of government support:
- Enterprise Investment Schemes (EIS): these are investments in small companies where income tax relief at 30% is available.
- Feed-In Tariffs (FIT): these are sums paid by the government to encourage small-scale solar power generation
This is an unusual opportunity. EIS relief is normally associated with investment in very high risk companies. However, Feed-In Tariffs guaranteed by and paid by the government make some solar energy investments relatively secure.
The window to invest with the full impact of both these elements is only open this tax year. After this FIT rates will fall and EIS relief will no longer be available on these companies. As a result of this government support, some Solar Energy Investments are likely to produce post-tax returns in excess of 10%-15% pa (equivalent to a gross rate of 20%-30% pa for 50% tax payers) over a 3-4 year period. Others will be poorly run or will charge higher fees and will produce much lower or negative returns.
This web-page is a financial promotion to see if you would like jonathanfry plc to investigate this opportunity for you. If you do, we will:
- Produce a specific report taking into account your circumstances, objectives and attitude to risk either recommending that you make a Solar Energy Investment or recommending that you do not
- Provide you with details of our thorough general investigation of the different firms providing such investments.
- Implement the investment (if we recommend you make one)
- Produce regular reports on the progress of your investment (if you make one)
- Advise you when and how to realise your investment (in 3-4 years' time) or whether to hold the investment in the long term.
The intended term for these investments is from 3-4 years for most clients. Our service is offered for investments between £25,000 and £1m. The fee for our work on these investments is an initial 2.5% plus 0.5% pa of the value of your investment. These fees will only be payable if we recommend that you invest and if you decide to invest. These fees may be covered by commission paid to advisers.
These investments are only suitable for some investors:
- If you do not pay income tax, you lose much of the benefit from investing in an EIS scheme. (Note that whatever rate of tax you pay, tax relief on these EIS investments is currently given at 30% of the investment, to a maximum of the total tax you pay for the current year, or £150,000 if less.)
- You must be able to lock your investment away for 3 years. You are unlikely to be able to realise your investment earlier than 3 years from the date it is invested, and even if you did realise it you would lose the tax benefits from your investment.
- Despite the support of tax relief and Feed-In Tariffs, these investments are relatively high risk. For example: qualifying EIS companies are unquoted and it may be difficult to sell the investment; feed-In Tariffs are only paid at current levels if the solar panels are installed by April 2012; the actual tax treatment of the investment, and hence the returns achievable, depends on your specific circumstances and may be subject to change in future. You should only invest if you can bear these risks.
A full Service Description is available from the link below.
SA SD Solar pdf - click here for pdf.
To enquire, please complete the solar email enquiry form or call us on 01748 825971.
Solar email enquiry form - click here to complete and send email enquiry
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