Solar VCT groups in uproar over proposed government U-turn

Investors criticise the government's decision to reverse ‘extension rule' on tax relief.

Thousands of investors in solar VCTs that buy into large-scale renewable energy products could lose millions after the government announced it is reviewing recent legislative changes. The government’s Department of Energy and Climate Change (DECC) is proposing to axe the ‘extension rule’ that gave VCT providers an extra 12 months to benefit from big tax breaks, in a major U-turn to April’s budget proposals. In April the government announced new larger-scale renewable energy sites that are between 0.5 and five megawatts, will have their feed-in-tariff payments cut by 70%. However, w...