Our Specialist Sectors
Renewable Energy
Many landowners and farmers are now considering renewable projects; from solar panels on roofs and in fields to wind turbines, anaerobic digesters and biomass boilers to name but a few.

The structure of the renewable project cannot be looked at in isolation from your other business and investment activities. All areas of taxation need to be considered as a project could have an adverse affect on your existing tax planning strategies. Ellacotts are experienced at working through a variety of options with their clients to deliver a solution that fits with the client’s needs.
 

Solar

Small scale solar projects fit in well with the existing farming business, especially where there is large electricity usage on the farm. Larger renewable projects or leasing land to developers, however, needs further consideration. The income is likely to be high so income tax planning is essential. It is also an opportunity to structure projects so that non-farming family members, including any grandchildren, could benefit from some of the income. Limited companies can work well in this respect but consideration is needed as to the financial requirements outside of the limited company, as they are certainly not a one solution fits all answer.

Biomass

Many clients are investing in biomass boilers with the incentive of HM Revenue & Customs First year allowances for energy saving products. The first year allowance scheme allows 100% of the cost to be set against taxable profits of the business.  There are green advantages of reduced energy use and carbon footprint and in addition financial saving to be made.

Anaerobic Digestion

Anaerobic Digestion is an organic process, similar to composting and produces a by product methane which can be used as a fuel to generate power.  Advantages of this is the reduced waste disposal costs and helps farms meet requirements for nitrate venerable zones.

Leasing or Rental Arrangements for Renewable Energy Installations

Often land is leased to a developer instead of investing in a renewable energy installation.  Rental income and lease payments are taxable as with any other rental arrangement.

 
We would love to hear from you!
Book a free meeting with us today.
Mark Dickin
Partner
Rachel Rahman
Manager

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