RHI and income tax

[BruceB]

As we are approaching the deadline for 2014/15 income tax returns I was wondering whether RHI income in a domestic scenario should be declared on a tax return?


The Government introduced specific legislation to make FIT income tax free, but has not made similar provision for RHI income as far as I am aware. However, I saw some HMRC guidance this evening for the first time that answers the question – they consider it tax free.


https://www.gov.uk/guidance/taxation-of-renewable-heat-incentives

 

[Deleted member 26818]

If the income is tax free, can you still offset any expenses against your tax?

 

[BruceB]

Only if the expenses are in the course of a business, in which case the income is then not income/corporation tax free.

All the guidance is doing is confirming the approach that I suspect most were taking anyway, but at least it gives some authority for that approach.