Alex Simmons

The Tax Lifeline of a Renewable Energy Scheme

Transcript

1. Alex Simmons Tax Partner, Saffery Champness
2. TAX CONSIDERATIONS - THE LIFE CYCLE OF RENEWABLE ENERGY PROJECTS Energy Now Expo Alex Simmons Tax Partner 30th January 2013
3. Energy Now Expo Introduction • Ownership of land • Trading vs. Non Trading • Set Up • Operation Period • Succession
4. Energy Now Expo Ownership of land • Where is the income needed • What is the likely length of the project • What will the value of the project be • Who will run the business • Act sooner rather than later
5. Energy Now Expo 0 2 4 6 8 10 12 Time Value £m
6. Energy Now Expo Trading vs. Non Trading • Tax reliefs available • Involvement in the project • Appetite for risk
7. Energy Now Expo Structures for consideration • Sole Trader • Partnership • Limited Liability Partnership • Company • Leasehold Interest
8. Energy Now Expo Enterprise Investment Scheme • Availability – AD, Hydro & RHI • Income tax relief • Capital Gains Tax Deferral Relief • Capital Gains Tax Exemption • Loss Relief
9. Energy Now Expo Operation Period • Capital Allowances • Loss relief • Loan interest relief • Consultation on capping tax reliefs
10. Energy Now Expo Succession Planning • Capital Gains Tax • Gift to next generation/Trust • Sale to third party Inheritance Tax • Agricultural Property Relief • Business Property Relief • One Estate Trade
11. Energy Now Expo Summary • Decide on land ownership at outset • Chose trading vs. non trading status • Pick most suitable structure based on • Risk • Other investors/funding • Income tax considerations • Capital tax considerations
12. Alex Simmons CTA alex.simmons@saffery.com 01202 204714