Octopus EIS

Octopus EIS offers a compelling opportunity for individuals looking to take advantage of the range of tax benefits provided by Enterprise Investment Schemes (‘EIS').

Octopus EIS will focus on investing in solar energy installations which benefit from the government's Feed-in Tariff (FiT) scheme, as well as similar schemes abroad.

The combination of tax benefits underpinned by a predictable income stream from solar power generation offers a compelling opportunity for investors.

Tax Benefits

Enterprise Investment Schemes can help investors generate an attractive return by delivering a range of tax benefits:

• 30% upfront income tax relief if the investment is held for three years
• Potential Capital Gains Tax deferral (up to the amount of the gain invested)
• Tax-free growth
• Up to 100% IHT relief (provided funds remain invested at the time of death) 

Important Information

It is very important that you read and fully understand the risks involved with this investment so that you can decide whether it is right for you. Tax reliefs are subject to HMRC approval and are not guaranteed. Tax treatment is dependent on individual circumstances and may change in the future. Please remember that the value of an investment in Octopus EIS can fall as well as rise and you may not get back the full amount invested. The key risks associated with this product are explained in the product brochure.

Investment approach

Octopus EIS will invest in a portfolio of EIS qualifying companies with a focus on capital preservation.

Solar energy offers an attractive investment opportunity for investors for the following reasons:

• A proven track record: solar electricity is a well established technology that has been used for many years outside of the UK.
• A predictable revenue stream: solar energy delivers predictable volumes of energy, and therefore a visible revenue stream and return for investors.
• It offers a long-term price for the output that accounts for inflation: government legislation stipulates that the payments to the solar investee companies will remain in place for 25 years, with the amount paid increasing in line with the Retail Price Index.
• Known costs: the costs involved in setting up solar installations are incurred upfront and can be budgeted for. What's more, ongoing maintenance and monitoring costs are very low.

Next steps

You can invest anything from £25,000 plus into Octopus EIS. There's no maximum investment, but you only receive income tax relief on the qualifying investments up to £500,000 per tax year.

You can invest in Octopus EIS direct via Octopus, or through a financial adviser. However, we would always recommend that you seek independent financial advice before investing.

Our application process is simple and straightforward and you'll only need to complete one form - which you can download below. We accept payments via cheque or electronic transfer, via CHAPs or BACS, and we'll confirm receipt of your documents by return post.

Once your money is invested, we'll send you regular updates on how your investment is doing along with contract notes each time a new investment is made

Solar Update

The government has recently announced further changes to the Feed-in Tariff (FiT) for solar electricity projects, bringing forward the reduction that was widely anticipated to take effect from March 2012.

Despite the reduction to the FiT, we're confident Octopus EIS continues to present an attractive opportunity to participate in this asset class. This is partly due to the falling cost of installing solar panels, but also due to our size as the largest investor in commercial solar projects in the UK. 

The combined experience of Octopus and our in-house development team (Lightsource Renewable Energy) means that we have already identified a significant pipeline of sites that suit our investment strategy.