Since the Spring 2023 budget, the Full Capital Expenditure and 50% FYA (first-year allowance) has come into a play with regards commercial solar.
For a commercial solar installation on a business premises, the client can potentially claim 50% for the value of long-life assets from their year-end corporate tax.
This amounts to 9.5% to 12.5% (depending on business tax bracket) of the total solar PV project value.
Commercial solar PV falls under the ‘special rate’ items. This would mean it will be under 50% any first-year allowance deduction. The client can then implement 50% of a total project value to be deducted from their year-end corporate profit tax.
Speak to your business accountant to understand fully the financial tax benefits to fitting solar for your business.
Click here for further details:
https://www.gov.uk/hmrc-internal-manuals/capital-allowances-manual/ca22335
