Flecktimus
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« on: March 08, 2010, 11:59:58 AM » |
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I have 5 Tenanted property's that may be of use for solar panels,
Would the installation be Capital or Tax deductible
Thanks In advance
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dhaslam
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« Reply #1 on: March 08, 2010, 12:25:03 PM » |
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I would have thought that solar panels would qualify as equipment for wear & tear purposes. In Ireland the distinction isn't important because TCA section 350 G-J allows .. the provision of improvement of water, sewerage or heating facilities.... for rented properties at 15% which is slightly higher than the normal 12.5% rate for equipment. The UK seems to have their own variations in special allowances including for energy saving. www.hmrc.gov.uk/helpsheets/hs250.pdf |
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Flecktimus
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« Reply #2 on: March 08, 2010, 01:54:04 PM » |
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I would have thought that solar panels would qualify as equipment for wear & tear purposes. In Ireland the distinction isn't important because TCA section 350 G-J allows .. the provision of improvement of water, sewerage or heating facilities.... for rented properties at 15% which is slightly higher than the normal 12.5% rate for equipment. The UK seems to have their own variations in special allowances including for energy saving. www.hmrc.gov.uk/helpsheets/hs250.pdfCheers but unfortunately i couldn't find an answer, but for anyone looking for 100% allowances on renewable s http://www.eca.gov.uk/ |
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peter999
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« Reply #3 on: March 08, 2010, 03:15:21 PM » |
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ANY MONEY SPENT ON THE PROPERTIES WOULD BE TAX DEDUCTABLE AT YOUR MARGINAL TAX RATE AS THEY WOULD BE TREATD AT BUSINESS EXSPENSE JUST AS IF YOU WERE REPLACING THE BOILER OR THE WINDOWS. THEY WOULD ADD TO THE VALUE OF THE PROPERTIES SO IF YOU SOLD THE PROPERTY THEY COULD INCREASE YOU PROFITS AND THUS YOUR CAPITAL GAINS TAX LIABILITY.
PETER
PS SORRY ABOUT THE CAPITALS KEYBOARD AS AN ATITUDE!!
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JohnS
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« Reply #4 on: March 08, 2010, 04:15:43 PM » |
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If you claim allowances on the basis that they are business assets, then expect to pay tax on the income they produce. You cannot have your cake and eat it.
I doubt they would affect your capital gains tax position as they would be deemed to be wasting assets.
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2.1kWp solar PV
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Flecktimus
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« Reply #5 on: March 08, 2010, 06:13:36 PM » |
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ANY MONEY SPENT ON THE PROPERTIES WOULD BE TAX DEDUCTABLE AT YOUR MARGINAL TAX RATE AS THEY WOULD BE TREATD AT BUSINESS EXSPENSE JUST AS IF YOU WERE REPLACING THE BOILER OR THE WINDOWS. THEY WOULD ADD TO THE VALUE OF THE PROPERTIES SO IF YOU SOLD THE PROPERTY THEY COULD INCREASE YOU PROFITS AND THUS YOUR CAPITAL GAINS TAX LIABILITY.
PETER
PS SORRY ABOUT THE CAPITALS KEYBOARD AS AN ATITUDE!!
Hi Peter Is that your opinion or are you pretty confidant that is the case. By the way i agree with your assessment, but HMRC don't always think the same as normal people  |
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Flecktimus
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« Reply #6 on: March 08, 2010, 06:25:33 PM » |
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If you claim allowances on the basis that they are business assets, then expect to pay tax on the income they produce. You cannot have your cake and eat it.
I doubt they would affect your capital gains tax position as they would be deemed to be wasting assets.
Hi John Thanks for the reply and i can see where you are coming from, but i hope you are wrong  |
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dhaslam
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« Reply #7 on: March 08, 2010, 06:40:46 PM » |
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Capital gains tax relating to wasting assets in the UK is the same as in Ireland. They are not exempt from Capital Gains Tax if capital allowances are claimed. www.hmrc.gov.uk/helpsheets/hs293.pdf |
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JohnS
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« Reply #8 on: March 08, 2010, 08:14:44 PM » |
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Capital gains tax relating to wasting assets in the UK is the same as in Ireland. They are not exempt from Capital Gains Tax if capital allowances are claimed.
Your are partly right. I think the position is that any difference on sale (i.e. proceeds less (cost - capital allowances)) is included as income, not capital gains. John |
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2.1kWp solar PV
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dhaslam
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« Reply #9 on: March 08, 2010, 09:10:04 PM » |
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No Capital Gains is a separate tax. In 35 years since CGT was introduced in Ireland I have only seen it happen once, Balancing Charge plus Capital Gains on the same item. It was a tractor, owned by a farmer, sold for more than it cost after twenty years.
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peter999
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« Reply #10 on: March 09, 2010, 10:23:00 AM » |
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Flecktimus
further to my earlier reply that is how it is under CURRENT taxation rules but can change at any time!!
Becareful if you start trying to claim under other relief etc when it comes to the taxman or the Vat man Keep It SImple and VERY transparent!!
Peter
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Flecktimus
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« Reply #11 on: March 09, 2010, 12:08:41 PM » |
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Flecktimus
further to my earlier reply that is how it is under CURRENT taxation rules but can change at any time!!
Becareful if you start trying to claim under other relief etc when it comes to the taxman or the Vat man Keep It SImple and VERY transparent!!
Peter
Thanks Pete simple and transparent are my middle names  |
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