PV on ex-agricultural building

[solgen]

Hi,

I have been invited to prepare a quote for a building which used to be an agricultural building. It has a 3 phase supply so a can easily take a 10kW system.

The owner of this building owns the hotel literally across the road from it.

At this point I don't know if the building has a separate supply to that of the hotel but wonder what the implications are if they are separate for :

1. FIT payment
2. The VAT to charge.

Thanks

 

[BruceB]

The issue with the FIT is taxable or non-taxable. From the HMRC site:
[h=3]Renewable Heat and Feed-In Tariffs[/h] Individual householders who use renewable technology to generate electricity mainly for their own home will not be liable to income tax on feed-in tariffs.

I doubt the hotel would qualify as their 'own home' more likely to be a business so corporation tax due.

But in that case capital allowances can be claimed. AIA is 100K per annum to Apr 12, then it reduces to 25K per annum. And there was a proposal announced a few weeks ago to reduce the WDA for amounts in excess of the AIA to 8% for P&M based on technolgies that are eligible for FIT and RHI, again from Apr 12.

VAT position is here:
HM Revenue & Customs: Paying reduced rate VAT on energy-saving materials and
HM Revenue & Customs
Hotels are 20% as is anything non-residential

If the hotel owner is VAT registered then they can claim the input VAT back that you charge, because although FIT is outside the scope of VAT, the export tariff is within the scope of VAT (the 5% rate for energy).

These things make doing illustrations for commercial customers a lot more complicated!

Regards
Bruce

 

[solgen]

Hi Bruce,

Thanks for this information I'll look up your TLA's later!

I assume from your comments that the issue of a separate supply or one for the hotel and the agricultural building makes no difference to tariff and VAT based upon what you have said?

Thanks

 

[BruceB]

Sorry about the TLAs but to understand it your are going to have to get your head around them anyway.

No difference from the perspective of they are both 'not domestic'
There could be a difference if hotel and barn are owned by different persons - ie one owned personally and one by a company.

 

[Markc]

You may also need to consider planing permission as it will be outside the scope of the planning portal, not a dwelling.

 

[solgen]

Hi Mark C,

Thanks for confirming my thoughts on that!