GUIDE TO THE TAX POSITION IN RELATION TO FEED-IN TARIFFS (FITS)V1-JC-01082014
- If a landlord receives feed-in tariff payments in relation to any property which is rented out then these payments are taxable in the hands of the landlord. These payments must be included in your tax return as part of your overall property business. The law is clear on this. If you receive an income from exploiting your property or granting any interest over your property then you have to pay tax on the payments received. When you install solar panels yourself or allow someone else then any income that you receive as the result is regarded as exploiting the property so that tax is payable.
- It has been drawn to our attention that some companies who are promoting solar panels etc are suggesting that the income receivable by landlords from the feed-in tariff is not taxable. This is wrong and they are trying to mislead you if they say this. The position is potentially different if you are receiving the tariff for your own owner occupied property but if it is paid to you for a property in your rental portfolio you have to pay tax on it.
If you would like to speak to a qualified accountant for specialist tax advice please contact our service partners RITA4RENT to discuss what services you would like to employ them for.