I invested in solar panelling and as a result of the free electricity I've upped the rent a bit but also given the tenants reason to optimise energy usage.
I'm aware of the income tax that will have to be paid on the rent and Feed-in-Tariff payments I earn.
I'm unclear on the best way to treat the capital investment. The property isn't registered as a business + I'm not VAT registered.
I'd assumed I'd have to keep receipts and could up the purchase price of the property by the c£4000 for calculating Capital Gains Tax. But, it may be >>20years before I consider selling it if I do.
However, I understand there is something called Capital Allowances and that solar panelling is seen as a >25year asset. Maybe there are other options?
What is/are the best way(s) to proceed on the tax treatment of this?
I also invested in a Combi Boiler [replacing wall heaters] about 2 years ago and assumed that the capital investment(c£4000) is used to up the purchase price for CGT. If there are other options please advise.
Thankyou for any guidance