CA22335 | Plant and Machinery Allowances (PMA): Solar panels

CAA01/S104A

With effect from 1 April 2012 for corporation tax and 6 April 2012 for income tax, all capital expenditure on the provision of solar panels is specifically designated as special rate.

The reason for designating solar panel expenditure as special rate expenditure was to ensure clarity of treatment. Before 1/6 April 2012 solar panels including photovoltaic varieties, which generate electricity, and solar thermal systems, which provide hot water, were generally treated as special rate on the basis that they were integral features of buildings or structures CA22300 or long life assets CA23700.