Gaia-Wind Praises UK Treasury's £250,000 Windfall for Small Wind Turbine Buyers
UK farms and rural businesses with renewables in mind have been given a quarter million pound window of opportunity over the next two years. Businesses will see an increase in the annual investment allowance (AIA) giving 100% tax relief on investments from £25,000 to £250,000 for the next two years.
Farms and rural businesses with renewables in mind have been given a quarter million pound window of opportunity over the next two years. Businesses will see an increase in the annual investment allowance (AIA) giving 100% tax relief on investments from £25,000 to £250,000 for the next two years.
Johnnie Andringa, CEO of Glasgow based Gaia-Wind said:
“This is a fantastic opportunity for those looking to invest in small wind. The allowance comfortably covers an investment in one or even several small wind turbines and means that a farm or rural business could offset the entire cost against their income tax in year one.
“Investing in one turbine at around£45,000* would mean the net cost of the turbine for a 40% tax payer would be £27,000:
• Payback time on a Gaia-Wind turbine based on the current Feed in Tariff drops from 5.3 years to 3.4 years; and
• The level of investment required for say, two turbines, drops to around the previous cost for one – with double the return.
“With this level of tax relief, investing in two or even more turbines is more accessible for everyone: In the week that we have seen threats of even more utility price rises this must encourage farmers and landowners to act swiftly to secure this advantage.”
The UK Treasury said:
“This measure is designed to stimulate growth in the economy by providing an additional time-limited incentive for businesses to invest in plant or machinery. A business with a calendar year chargeable period will be entitled to a maximum AIA of £250,000 for each of its 2013 and 2014 chargeable periods.
“It is estimated that around 90,000 businesses, spending over £25,000 a year on qualifying plant and machinery, would benefit from this accelerated tax relief measure. It increases the net present value of capital allowances to investors in plant or machinery and provides a cash flow benefit, likely to be of most help to small and medium-sized businesses.”
1. For further information email email@example.com or call 07920715345
2. HMRC note is at http://www.hm-treasury.gov.uk/Search.aspx?terms=AIA
3. In 2012 Gaia-Wind was listed as the fastest growing private company in Scotland and the eighth fastest growing in the UK.
4. Almost 800 Gaia-Wind turbines have been “in the ground” for a combined operational time of more than 14 million hours. That’s over 1,500 years. In Denmark, 77 of our Gaia-Wind turbines have been running for more than 10 years.