Bruce Davis, managing director of Abundance Generation, is calling for the government to allow crowdfunding investments to be held within the tax-efficient ISAs. Davis is hoping for an announcement relating to the issue in Chancellor George Osbourne’s Autumn Statement.
“There is an appetite from the Treasury to support it,” said Davis. “[A lack of liquidity] was their argument against allowing [crowdfunding investments in ISAs] but that is no longer an issue [as AIM shares are allowed in] and AIM shares are typically illiquid”.
Davis further opined that crowdfunding investments into ISAs would be especially beneficial for renewable energy projects. Such projects have until now benefited from tax breaks when invested in via venture capital trusts (VCTs) and enterprise investment schemes (EISs).
Davis believes believes ISA money represents a more long term support base for renewable energy campaigns, calling EIS and VCTs “disloyal money” which failed to help the sector.