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