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Solar-powered UK schools face an 800% tax increase

37 pointsby petewailesabout 8 years ago

10 comments

pjc50about 8 years ago
The whole thing is bonkers. A more detailed briefing on <i>exactly</i> what the change is: <a href="http:&#x2F;&#x2F;www.solar-trade.org.uk&#x2F;wp-content&#x2F;uploads&#x2F;2016&#x2F;08&#x2F;Stakeholder-briefing-business-rates-rooftop-solar-v0.8.pdf" rel="nofollow">http:&#x2F;&#x2F;www.solar-trade.org.uk&#x2F;wp-content&#x2F;uploads&#x2F;2016&#x2F;08&#x2F;Sta...</a><p>The UK does not have property tax per se, it has &quot;business rates&quot; which are collected by the local authority. State schools are considered to be &quot;businesses&quot; (WTF#1), while private schools which are nearly always structured as &quot;charities&quot; do not have to pay rates (WTF#2).<p>Business rates are calculated based on the value of the building + fixed equipment (plant). This change counts solar panels producing energy used predominantly on the premises as &quot;plant&quot; and imposes a requirement to pay tax based on their capital value. (WTF#3). This does not apply to sites generating primarily for export (WTF#4).<p>It&#x27;s unnecessarily penalising schools who bought panels in the hope that they could use the future guaranteed subsidies as income. But that&#x27;s about what you&#x27;d expect from a Conservative government.<p>(Definition of &quot;plant&quot;: <a href="http:&#x2F;&#x2F;www.legislation.gov.uk&#x2F;uksi&#x2F;2000&#x2F;540&#x2F;pdfs&#x2F;uksi_20000540_en.pdf" rel="nofollow">http:&#x2F;&#x2F;www.legislation.gov.uk&#x2F;uksi&#x2F;2000&#x2F;540&#x2F;pdfs&#x2F;uksi_200005...</a> )<p>(The whole thing brings up an unforseen disadvantage of trying to do renewables through a &quot;distorted free market&quot; rather than just direct state action: people taking advantage of the subsidies are called &quot;gaming the system&quot;, when the entire point of the subsidy policy was to pay them to do exactly that. Also, UK local government and schools funding is a collection of fudges to outdated systems, but nobody wants to go near that mess.)
andrewmuabout 8 years ago
One of the further absurdities is that the tax applies to state schools but not private fee-paying schools.
stefek99about 8 years ago
I don&#x27;t get the solar business in the UK.<p><a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Solar_irradiance" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Solar_irradiance</a><p>$1000 worth of raw materials (photovoltaic cells) would be much better used in countries like Syria.<p>In Winter there is not much Sun &#x2F; daylight hours, and the energy usage is higher due to heating and lightning so other electricity production methods need to provide 100% of the demand anyway.<p><pre><code> installation slowed by 85 percent caused by the end of subsidies for solar farms and and incentives for homeowners </code></pre> It&#x27;s even more outrageous after considering - homeowners are on richer than people who are renting. Giving taxpayers money to...<p><i>(I could never understood solar business in the the UK and rapid decline after subsidies has ended only proves the point)</i><p>Next time similar opportunity arise - I&#x27;ll raise the money and hop on the bandwagon... :)
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jankotekabout 8 years ago
Link does not provide much information, here are more details:<p><a href="https:&#x2F;&#x2F;www.theguardian.com&#x2F;environment&#x2F;2017&#x2F;mar&#x2F;06&#x2F;solar-powered-schools-bill-business-rates-rise-england-wales" rel="nofollow">https:&#x2F;&#x2F;www.theguardian.com&#x2F;environment&#x2F;2017&#x2F;mar&#x2F;06&#x2F;solar-po...</a><p>&gt; <i>The Valuation Office Agency said last year that small non-domestic solar installations would no longer be exempt from rates and bigger solar systems already subjected to business rates would see a hike of 600-800%.</i><p>&gt; <i>Solar-equipped private schools will duck the changes because of their charitable status. </i><p>I think it is a sign that solar electricity has matured, does not need subsidies, and can stand on its own (and be taxed the same way as other industries).
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huffmsaabout 8 years ago
Oh, it&#x27;s £1.2m COMBINED in new taxes.<p>I thought it was a per school rate.<p>Nonetheless, not great and an odd move
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transfireabout 8 years ago
Trick of the oil lobby. First you give subsidies, then take them away in one fell swoop. It&#x27;s very bad for the industry. They pulled the same crap in Nevada.
nicky0about 8 years ago
Wait a minute, schools pay tax??
jlebrechabout 8 years ago
couldn&#x27;t they say they no longer use them and disconnect them when someone comes to check? (this is how people get around paying their TV licence in the uk)<p>What I also don&#x27;t get is that they are taxing state schools, it&#x27;s like taking one&#x27;s wallet from the right pocket and putting it in the left pocket.
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macuabout 8 years ago
How can they tax sun collection, that is sickening.
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briandearabout 8 years ago
A loss of a subsidy is a tax hike? Seems like that terminology is misleading while technically correct. If solar is so efficient why would it need a subsidy; wouldn&#x27;t the market make it more desirable? If it isn&#x27;t so efficient, then why subsidize it? It seems like the people that want solar should pay what it costs.