Business fit rates ?

[GSD77]

Hello

I know a home or small business having up to 4kw will recieve a fit rate of 43.3p per kwh but is it still the same for lets say a farm or business with a 3 phase supply with a 4kwp system per phase.

Also are feed in tariff payments to businesses tax free ?

Thanks

 

[TedM]

FiTs payments are in system capacity bands. For PV these are:



The tax free status for FiTs only applies to domestic systems, so a business would be taxed on the income the same as any normal income. But there are capital allowances that can be tax efficient in allowing upto 100% of the cost to be written off in year one - you should get professional advice on this from an accountant and be aware that there are some major changes planned by HMRC that will affect this from next April.

 

[GSD77]

Thanks TedM that answers my question but im still unsure about three 4kwp systems on a 3phase supply and the feed in tariff rate they would recieve. Am I right in thinking it would 3 MCS certificates aswell ?

 

[MorganPVI]

there are some major changes planned by HMRC that will affect this from next April.

Can you expand on this Ted? Any further info greatfully recieved.

 

[TedM]

@GSD77 - if the system was considered a single 'site' (such as one address, one MPAN, etc) then you would have a 12kW system paid at 32.9p.

@Morgan123 - you can read about it here - http://customs.hmrc.gov.uk/channelsPortalWebApp/downloadFile?contentID=HMCE_PROD1_031306 - Basically HMRC consider that if a business gets both FiTs (or RHI) and capital allowances then it's a double bonus and they want to remove one of them.