Global > United Kingdom >  Services > Tax > Budget 2007 > Microgeneration: Taxation treatment of renewables obligation certificates
 

Microgeneration: Taxation treatment of renewables obligation certificates

Renewables obligations certificates are issued by Ofgem to accredited generating stations to certify the quantity of electricity generated from renewable sources. They can be sold to energy suppliers to help the energy suppliers meet their Renewables Obligation.

The person in receipt of the renewables obligations certificate could be subject to income tax on its receipt and to capital gains tax if there was a gain on its disposal.

From 6 April 2007 where private householders install microgeneration technology they will be exempt from income tax on the receipt of renewables obligation certificates and exempt from capital gains tax on disposal.