eQ other sectors
Renewable Energy
Renewable energy is very much a hot topic amongst our client base in rural Scotland, and we have brought together the expertise we have already developed to form a specific team to advise on issues such as business structure, taxation and funding relating to renewable energy projects. We have clients involved in wind, hydro, anaerobic digestion and bio-fuel projects, and understand the key issues pertaining to each.
Business structures
Creating the appropriate structure through which to develop or operate a renewable energy project is critical, and there are practical and taxation issues to consider when doing so. Each situation should be assessed on the circumstances of those involved, the risks, the capital requirements, and the likely income streams. The wrong structure may give rise to significant unnecessary capital tax liabilities. Professional advice at an early stage is essential to avoid the pitfalls.
Taxation
The tax implications of embarking on a renewable energy project are often not fully considered at the outset, and many illustrations we see presented by developers ignore the issue completely.
We can advise our clients how best to minimise the tax implications of their particular project, ensuring that the most appropriate business structure is put in place, considering all relevant taxes. Income and corporation tax, capital allowances on equipment, stamp duty, VAT, capital gains tax and inheritance tax all have to be considered and mitigated, and this is best done by considering tax as an important aspect of the project at the outset.
Funding
Renewable energy projects vary considerably in character, scope and funding requirements. Some projects will require very little up front spend by the farmer/landowner, for example where another operator is proposing to lease the site from them and pay a rent, that operator will normally fund the project almost in its entirety. Projects in which the farmer/landowner has a stake or full control will often require considerable funding prior to any energy generation coming on stream.
Most of the main banks are keen to consider providing funding for robust projects, with some banks seeing this area as an opportunity to provide specialist funding profiles and rates, to gain market share. Grant funding may also be available for certain types of project.
The EQ Renewables team are well placed to advise clients and prospects on all of the above issues, and we would be delighted to hear from you if you are involved in or considering a renewable energy project. Contact the following members of our team: -
Graeme Davidson 01307 474274 graeme.davidson@eqaccountants.co.uk
Iain Gordon 01307 474274 iain.gordon@eqaccountants.co.uk
Mark Smeaton 01307 474274 mark.smeaton@eqaccountants.co.uk
