Part 2

Environment

Domestic microgeneration

Renewables obligation certificates for domestic microgeneration
21
1
In ITTOIA 2005, after section 782A (inserted by section 20) insert—

Renewables obligation certificates for domestic microgeneration
782B
1
No liability to income tax arises in respect of the receipt by an individual of a renewables obligation certificate if—
a
the individual receives the certificate in connection with the generation of electricity by a microgeneration system,
b
the system is installed at or near domestic premises occupied by the individual, and
c
the individual intends that the amount of electricity generated by it will not significantly exceed the amount of electricity consumed in those premises.
2
In subsection (1)—
- “domestic premises” and “microgeneration system” have the same meaning as in section 782A, and
- “renewables obligation certificate” means a certificate issued under section 32B of the Electricity Act 1989 or Article 54 of the Energy (Northern Ireland) Order 2003.
2
In TCGA 1992, after section 263 insert—

Renewables obligation certificates for domestic microgeneration
263AZA
1
A gain accruing to an individual on a disposal of a renewables obligation certificate is not a chargeable gain if—
a
the individual acquired the certificate in connection with the generation of electricity by a microgeneration system,
b
the system is installed at or near domestic premises occupied by the individual, and
c
the individual intends that the amount of electricity generated by it will not significantly exceed the amount of electricity consumed in those premises.
2
In subsection (1)—
- “domestic premises” means premises used wholly or mainly as a separate private dwelling,
- “microgeneration system” has the same meaning as in section 4 of the Climate Change and Sustainable Energy Act 2006, and
- “renewables obligation certificate” means a certificate issued under section 32B of the Electricity Act 1989 or Article 54 of the Energy (Northern Ireland) Order 2003.
3
The amendment made by subsection (1) has effect for the tax year 2007-08 and subsequent tax years.
4
The amendment made by subsection (2) has effect in relation to disposals on or after 6th April 2007.