Renewables and Tax (Sheila Robertson)

Renewables and Tax
Sheila Robertson (BMR director)
Gall Robertson CA
Tweedside Park
Tel: 01896 751050
Email: [email protected]
Two renewable energy sources on site:
• Solar panels
• Biomass boiler
• Capital cost
• Income
Capital expenditure
Capital allowances
– Annual Investment Allowance
• Currently £500,000
– Enhanced Capital Allowance energy scheme
• 100% First year allowance BUT
• Not available if tariff payments received under Feed in
Tariff or Renewable Heat Incentive
– Writing Down Allowances
• Solar panels have special rate capital allowance 8%
Domestic power generation
• Installed at or near your domestic premises
• Electricity generated will not significantly
exceed the amount consumed (by more than
• 5% VAT is charged by supplier on panel supply
• No income tax on feed-in tariffs
• VAT at standard 20% on commercial
equipment supply
• Is there a private use restriction - e.g. 2/3
VAT and Income
Supplying fuel or power for
– domestic use – 5%
– Mixed supply
– if 60% qualifying then all at 5%
- apportion if not
– Electricity less than 1000 kw hours per
month then all at 5%
VAT and Income (cont)
Feed in Tariff
– generation tariff no VAT
– Export tariff output VAT
Cottages - landlord
• unmetered - exempt –integral part of main
supply of accomodation
• Metered – 5%
• Impact on exempt income for partial exemption

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