Rental income and PV solar panels

by **ainaedil** on Fri Feb 03, 2012 5:16 pm

If I were to install solar panels for a residential property that I rent out to individuals and receive income which falls under Income Tax and assessed under self assessment?

Can I claim annual investment allowance/ capital allowance and set it against rental income?

Thanks

by **section 44** on Fri Feb 03, 2012 5:51 pm

Will you be paying tax on the income you receive from the feed-in tariff?

by **ainaedil** on Mon Feb 06, 2012 10:58 am

No, these will be tax free.

Many thanks

by **section 44** on Mon Feb 06, 2012 11:04 am

In that case then I don't see capital allowances being available. CAs aren't available in respect of dwellings. If you won't be paying tax on profits from the solar panel's themselves, CAs wont be in point for any other business.

by **King_Maker** on Mon Feb 06, 2012 1:31 pm

ainaedil wrote:No, these will be tax free.

Many thanks

Why?

IIRC, the tax exemption only applies to owner-occupier's domestic use?

Generally speaking, Capital Allowances are not available for residential properties.