Finance Act 2007 (c. 11)

Part 2 U.K. Environment

Domestic microgeneration U.K.

20 Income tax exemption for domestic microgeneration U.K.

(1) In ITTOIA 2005, after section 782 insert—

“782A Domestic 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.