Part 2Environment

Domestic microgeneration

20Income tax exemption for domestic microgeneration

1

In ITTOIA 2005, after section 782 insert—

782ADomestic microgeneration

1

No liability to income tax arises in respect of income arising to an individual from the sale of electricity generated by a microgeneration system if—

a

the system is installed at or near domestic premises occupied by the individual, and

b

the individual intends that the amount of electricity generated by it will not significantly exceed the amount of electricity consumed in those premises.

2

In subsection (1)—

  • domestic premises” means premises used wholly or mainly as a separate private dwelling, and

  • microgeneration system” has the same meaning as in section 4 of the Climate Change and Sustainable Energy Act 2006.

2

The amendment made by subsection (1) has effect for the tax year 2007-08 and subsequent tax years.

21Renewables obligation certificates for domestic microgeneration

1

In ITTOIA 2005, after section 782A (inserted by section 20) insert—

782BRenewables obligation certificates for domestic microgeneration

1

No liability to income tax arises in respect of the receipt by an individual of a renewables obligation certificate if—

a

the individual receives the certificate in connection with the generation of electricity by a microgeneration system,

b

the system is installed at or near domestic premises occupied by the individual, and

c

the individual intends that the amount of electricity generated by it will not significantly exceed the amount of electricity consumed in those premises.

2

In subsection (1)—

  • domestic premises” and “microgeneration system” have the same meaning as in section 782A, and

  • renewables obligation certificate” means a certificate issued under section 32B of the Electricity Act 1989 or Article 54 of the Energy (Northern Ireland) Order 2003.

2

In TCGA 1992, after section 263 insert—

263AZARenewables obligation certificates for domestic microgeneration

1

A gain accruing to an individual on a disposal of a renewables obligation certificate is not a chargeable gain if—

a

the individual acquired the certificate in connection with the generation of electricity by a microgeneration system,

b

the system is installed at or near domestic premises occupied by the individual, and

c

the individual intends that the amount of electricity generated by it will not significantly exceed the amount of electricity consumed in those premises.

2

In subsection (1)—

  • domestic premises” means premises used wholly or mainly as a separate private dwelling,

  • microgeneration system” has the same meaning as in section 4 of the Climate Change and Sustainable Energy Act 2006, and

  • renewables obligation certificate” means a certificate issued under section 32B of the Electricity Act 1989 or Article 54 of the Energy (Northern Ireland) Order 2003.

3

The amendment made by subsection (1) has effect for the tax year 2007-08 and subsequent tax years.

4

The amendment made by subsection (2) has effect in relation to disposals on or after 6th April 2007.