Solar energy - business tax benefits?
Solar energy panels continue to be in the news, not least because of the Government’s controversial decision to halve the returns from feed-in tariffs (FITs).
We’ve dealt with a number of queries on the perceived tax benefits for businesses deciding to put panels on their premises. Some are under the impression that the returns from FITs are tax-free but that does not appear to be the case. Adverts which say FITs are tax-free are aimed at the domestic user and may therefore mislead commercial users.
Capital allowances are available but the 100 per cent allowances for energy efficient plant are not applicable so the normal allowances for plant and machinery apply i.e. Annual Investment Allowance and 20% Writing Down Allowance (18% wef 6 April 2012).
