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Will I have to pay tax on my Feed-In Tariff (FIT) earnings?

Individuals who sell electricity generated by a microgeneration system are generally exempt from income tax, provided that:

  • The system is installed at or near to their home.

  • It is not intended that the amount of electricity generated significantly exceeds the amount used in the home. Significantly usually means 20% in these circumstances.

It’s important that you review your own situation and take appropriate advice about whether you need to pay tax, as different rules may apply to certain individuals. For example, the relief does not apply to companies.

“Microgeneration system” has the same meaning as in section 4 of the Climate Change and Sustainable Energy Act 2006.

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