UK
Ireland
Renewable energy
S&W is passionate about supporting businesses in creating better ways to power our world. The renewable energy and sustainable technology sector continues to grow fast as governments focus on climate change.
The UK’s target is to achieve net-zero emissions by 2050, and at COP26, the UN Climate Change Conference it hosted, heads of state, climate experts and campaigners agreed coordinated action to tackle climate change.
Our team has extensive experience supporting renewable energy and sustainable technology firms across technology development, generation and supply:
- Offshore and onshore wind
- Solar power
- Waste to energy
- Electric vehicles
- Battery storage
- Hydrogen fuel cells
- Carbon capture
Support for renewables businesses across the lifecycle
The renewable energy and technology industries are fast moving. It’s vital that your advisers understand the industry and are proactive and responsive to developments.
We work with a wide range of renewables businesses across all stages of a project lifecycle:
- Entrepreneurial and owner-managed businesses
- Investment funds investing in sustainable energy companies
- Large corporates in the renewable energy or adjacent sectors
We work closely with our clients to ensure a joined-up approach and the best result for their business. Whether it’s planning a sale, funding growth or building R&D tax credits and capital allowances into a project’s financial model, we deliver expert, informed advice.
Our approach for sustainable support:
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Dedicated
Your firm will benefit from our specialist energy team’s coordinated, cross-discipline service. We have more than 140 professional services partners, providing all-round advisory, accounting and tax services tailored to your needs.
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Experienced
With deep industry expertise and sector insight, we help steer your management team through your organisation’s unique challenges. We’ll help you to effect change and deliver your strategy successfully.
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Connected
Working the organisations across the industry, we are closely connected to energy businesses’ issues and concerns and can innovate to address them.
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Forward thinking
We seek not just to solve but also anticipate energy industry challenges. We shine a light on solutions for clients. Our focus on cutting edge technology helps businesses navigate complexity and seize opportunities in a fast-changing industry.
Frequently asked tax questions about renewable energy
What are the key tax considerations for a renewable energy project?
Renewable energy investments typically require significant upfront capital, but there are a variety of UK tax incentives available for businesses. Key tax considerations include the following:
- Interest deductibility in the group structure
- Capital allowances
- R&D tax incentives for innovative technologies
- Group and consortium reliefs
- Tax compliance for ongoing operations
- Exit strategies and participation exemptions
- Decommissioning costs and tax accounting
- Irrecoverable VAT and international intragroup transaction structures
- Stamp duty on acquisitions of property, land or shares
What environmental taxes exist in the UK?
There are several environmental taxes imposed in the UK to encourage businesses or users to reduce their environmental footprint:
- The climate change levy (CCL) on energy delivered to non-domestic users
- Landfill tax, which applies to all waste disposed of at licensed landfill sites unless it is specifically exempt
- The aggregates levy on sand, gravel and rock that has either been dug from the ground, dredged from the sea in UK waters or imported
What is the process for making an R&D tax relief claim?
R&D tax relief is claimed through a company’s tax return, assuming it pays UK corporation tax. A claim can be made up to two years after the end of the accounting period in which qualifying expenditure was incurred. However, preparing an R&D claim on a real-time basis tends to increase the value and robustness of the claim, because engineers or developers are more engaged in the process and supporting data is more readily available.
The first step is generally to identify qualifying expenditure incurred on relevant renewable energy projects. Our R&D team includes developers and engineers who fully understand projects at a technical level and can help prepare a technical narrative to accompany the R&D claim. The amount of supporting explanation required depends on the size and claim complexity, but our experts have a high success rate for R&D claims with HMRC.
What costs can my renewable energy business recover VAT on?
Supplies of energy are typically taxable for VAT purposes, so input tax incurred on project costs is often recoverable, subject to the normal rules.
The domestic reverse charge may apply to wholesale gas and electricity supplies, but this depends on the contractual position with customers. It is a complex area of VAT law, but our specialists are happy to help.
