Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, pursuant to the Answer of 4 March 2015 to Question 225330, on what timetable he plans to remove the entitlement of community energy co-operatives to Enterprise Investment Scheme (EIS) tax relief; and if he will make it his policy that EIS tax relief is not withdrawn for existing co-ops before April 2017.

The Autumn Statement 2014 announced that all community energy generation undertaken by qualifying organisations will be eligible for Social Investment Tax Relief (SITR) with effect from the date of the expansion of SITR, at which point it will cease to be eligible for the Enterprise Investment Scheme (EIS), the Seed Enterprise Investment Scheme (SEIS) or the Venture Capital Trust scheme (VCTs).

Co-operatives do not qualify for SITR as they are run for the benefit of their members rather than for the benefit of the community. However, co-operatives with a social purpose and which meet other criteria can convert to a community benefit society by free application to the FCA. Those that remain co-operatives and benefit from subsidies for the generation of renewable energy will no longer be eligible for EIS, SEIS and VCTs once State aid approval is received for the expansion of SITR.

The government is currently considering appropriate arrangements to ensure that there is a smooth transition for community energy activities from EIS, SEIS and VCTs to SITR.