Introduction Background Note
12.The purpose of these provisions is to:
	exclude from the venture capital schemes (EIS, SEIS and VCTs) companies that can currently benefit from government subsidies on activities involving the generation of energy; and
	extend the activities allowed under SITR once State aid clearance for the enlargement of SITR is received.
13.Subsidised energy generation activities involving anaerobic digesters, hydroelectric power and Contracts for Difference will be excluded from the venture capital schemes with effect from 6 April 2015.
14.However it is the government’s intention that the special provisions for community groups involved in subsidised energy activities, to qualify under the venture capital schemes, will remain in place until State aid clearance is received for the enlargement of SITR.
15.When State aid clearance is received for the enlargement of SITR, the government intends to introduce regulations to bring into effect the provisions of this Schedule to:
	exclude community energy activities from the venture capital schemes; and
	allow community groups that would be eligible for SITR, but for the fact that they are carrying out excluded activities involving the generation of energy for which a Feed-in Tariff is due, to become eligible for SITR.
16.Budget 2015 announced that the government will allow a transition period of 6 months following State aid clearance for the expansion of SITR before such eligibility for EIS, SEIS and VCT is withdrawn.
17.When State aid clearance for enlargement of SITR is received, it is the government’s intention to use the power in new section 257MW of ITA 2007 to allow community organisations carrying out small-scale agricultural and horticultural activities, which will not be eligible for direct payments under forthcoming Community Agricultural Policy reforms, to qualify for SITR. Organisations with land holdings of less than 5 hectares in England and Wales and less than 3 hectares in Scotland and Northern Ireland would become eligible for SITR.