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Renewables and Tax

Renewables and Tax. Sheila Robertson (BMR director) Gall Robertson CA Tweedside Park Tweedbank TD1 3TE Tel: 01896 751050 Email: sheila@gallrobertsonca.co.uk. Two renewable energy sources on site:. Solar panels Biomass boiler. Taxes. Capital cost VAT Income. Capital expenditure.

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Renewables and Tax

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  1. Renewables and Tax Sheila Robertson (BMR director) Gall Robertson CA Tweedside Park Tweedbank TD1 3TE Tel: 01896 751050 Email: sheila@gallrobertsonca.co.uk

  2. Two renewable energy sources on site: • Solar panels • Biomass boiler

  3. Taxes • Capital cost • VAT • Income

  4. 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%

  5. Domestic power generation • Installed at or near your domestic premises • Electricity generated will not significantly exceed the amount consumed (by more than 20%) • 5% VAT is charged by supplier on panel supply • No income tax on feed-in tariffs

  6. VAT • VAT at standard 20% on commercial equipment supply • Is there a private use restriction - e.g. 2/3

  7. 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%

  8. 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 rules

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