Business
EIS investment status granted by HMRC
EIS investment status granted by HMRC.
About this update from Atome Plc
[{"type":"text","content":"\n\n14 March 2024\n \nATOME PLC\n(\"ATOME\", \"the Company\", or \"the Group\")\n \nEnterprise Investment Scheme (\"EIS\") investment status granted by HMRC\n \nATOME (AIM: ATOM), the only international green fertiliser project development company on the London Stock Exchange, is pleased to announce that His Majesty's Revenue and Customs (\"HMRC\") has granted EIS status for the investment made by certain qualifying individuals in respect of the equity fundraise which was announced on the 19 February 2024.\n \nThe EIS is a UK government initiative which encourages investment in qualifying companies by offering tax benefits for qualifying investors who subscribe for new shares. For the avoidance of doubt, EIS income tax relief is not available for directors or employees of ATOME.\n \nSubject to certain conditions being met by the company and the investors, EIS enables a qualifying investor with a UK tax liability to claim tax relief in the UK of up to 30% of their investment, subject to a maximum investment of £1 million per tax year. In addition, when investors sell EIS shares, any growth in value from an investment is potentially free from UK capital gains tax (to qualify for this relief, income tax relief must have already been claimed and not withdrawn by HMRC. Investors also have to hold the shares for at least three years and the company and its group must remain EIS qualifying for at least three years). Further details about EIS can be found here. Prospective EIS investors should seek their own tax and financial advice.\n \nThe directors of ATOME also believe that an investment in the Company would potentially constitute a 'qualifying holding' for a Venture Capital Trust (\"VCT\") subject to certain conditions being met. A company can receive a maximum of £5 million from EIS and VCT investors on a 12-month rolling basis. The grant of EIS status broadens the Company's potential investor base as it continues to develop and grow. However, the Company reiterates that it intends to finance its first 145MW project in Paraguay at the asset level through its subsidiary, ATOME Paraguay.\n \nThe 100% green fertiliser that is targeted to be produced by ATOME from 2026 has a worldwide market, none more so than in the UK and Ireland where decarbonisation of the entire agricultural supply chain fr...