Green Investors Urged to Invest Now

“Later today, the government is expected to announce plans to further reduce our reliance on carbon energy so if your farm or business is thinking of investing in renewable energy now is the time to get started,” says Patricia Arnold of Hexham based accountants Patricia J Arnold & Co Ltd.

As energy costs continue to rise, there has been growing interest in renewable energy projects from both the private and commercial sector. In addition, in order to meet the EU Renewable Energy Target of 20% by 2020, the government is introducing a range of financial incentives to help steer the UK towards becoming a low carbon energy economy.

However those planning to invest in solar panels, wind turbines or other equipment,  should act sooner rather than later, as the current tax regime which favours capital expenditure giving 100% tax relief on costs up to £100,000 is set to change.

“From April next year, this 100% relief falls to just £25,000 per annum and relief for the balance of the cost is spread over a much longer period. It could be as much as twenty six years before you get the full tax relief!” warns Patricia.

“The maximum a business can claim will depend on its year end so business owners are advised to seek professional advice before committing to what can be a considerable investment. In an effort to encourage a move to producing energy from renewable sources, some types of equipment may continue to qualify for 100% relief. An accountant will be able to advise you as to which equipment is on the Government approved list.”

“Finally, investors should bear in mind that the current feed-in tariffs for the production of green electricity are due to change from April 2012. There is currently a window of opportunity to maximise your income and your tax relief however the timing of your investment will be crucial.”

Based in Hexham, Patricia J Arnold & Co Ltd was founded in 1985 to provide expert accounting and taxation advice with a specialist team which combines professional qualifications with practical experience. The firm provides tailor-made services to individuals, partnerships and small to medium-sized businesses throughout the North East and further afield.

For more information please contact Patricia J Arnold & Co Ltd   Tel: 01434 606624 Email: [email protected] or visit www.pjarnold.co.uk