We are pleased to confirm, following today's Pre-Budget Report, that earnings from the tariffs will be free of income tax for householders who install systems for their own energy production. Fuller details are shown on our website here:
Having campaigned actively for this we are obviously delighted and sure you will be too.
We also understand from the government that the next announcements on both tariff mechanisms have been delayed from december to January. Although any delay is unfortunate, we are advised it won't delay the start of the tariffs. The most optimistic think there is even the possibility that this could be good news - down to a delay in getting higher tariffs approved by Treasury. Don't hold your breath on that ...
The Pre-Budget Report by the Chancellor on 9th December 2009 stated that income from renewable energy systems will not be taxed.
We have subsequently received a call from the Treasury to confirm that both the generation and the export element of the tariffs will be exempt from Income Tax for householders who install systems mainly for use at home.
We will study any further announcements and post further details if appropriate.
[The Chancellor delivers Pre-Budget Report on 9th December 2009]
Extract from Chancellor's speech
From April, people with a home wind turbine or solar panels who plug their excess power into the national grid, will receive on average £900 a year.
I intend to make this payment tax free.
LATEST: Tax exemption confirmed in Pre-Budget Report
Building on the experience of pilot projects for Pay as You Save financing and Warm Front, the Government will consult next year on measures to help low-income households take advantage of clean energy cash-back.
Information from Own Energy
