ATOME announces that EIS investment status has been granted by HMRC
Published by Emily Thomas,
Deputy Editor
World Fertilizer,
ATOME, an international green fertilizer project development company on the London Stock Exchange, has announced that His Majesty’s Revenue and Customs 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.
The 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.
Subject 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free from UK capital gains tax (to qualify for this relief, income tax relief must have already been claimed and not withdrawn by HMRC.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). Prospective EIS investors should seek their own tax and financial advice.
The directors of ATOME also believe that an investment in the company would potentially constitute a ‘qualifying holding’ for a Venture Capital Trust 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 145 MW project in Paraguay at the asset level through its subsidiary, ATOME Paraguay.
The 100% green fertilizer 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 from supermarkets down to the farm is gaining increasing traction, importance and support. ATOME looks forward to delivering further positive news in the next months as it moves towards Final Investment Decision and asset level-funding for 145 MW green fertiliser facility in Paraguay.
Read the article online at: https://www.worldfertilizer.com/project-news/14032024/atome-announces-that-eis-investment-status-has-been-granted-by-hmrc/
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