Tax and solar panels
Question
Can any claim be made for solar panels installed on a residential property that is let? It seems not, as the feed-in tariff (FIT) would not be taxable but would like confirmation. Arthur Weller Replies: Firstly, I need to refer to you to 2 excellent articles on this subject by Lee Sharpe in the October 2011 and November 2011 editions of Property Tax Insider. Secondly, the answer to your question is that installing solar panels is a capital improvement. This means that you cannot claim the expense against rental income, but when you eventually sell the property, you can add the cost to the original cost of the property in order to reduce the capital gain. This answer is not dependent on whether the FIT is taxable or not.
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