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• # 75421
• Wed 19 Oct 2011 11:51 AM

Hi all,

Just a quick one - which nominal code would solar roof panels on a hotel come under?

Phil

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• # 75429
• Wed 19 Oct 2011 01:27 PM

Hi Phil

It would depend on

A) is the hotel paying for / owning them

B) how much are the solar panels costing.

If the hotel is paying for them and they are costing more than £1000.00 I would put them to the same nominal code used when refurbishments are carried out i.e. Freehold Improvements on the balance sheet.

You could also class it as plant as it will be generating electricity and possibly providing hot water.

Kind regards
Stuart


Edited for spelling 

Edited at 20 Oct 2011 06:12 PM GMT

• Forum Moderator, South East & Greater London Regional Chairman
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• # 75438
• Wed 19 Oct 2011 04:49 PM

I have a client whose just brought some for his roof. They are not cheap! As Stuart says I put it to a balance sheet code. My client is very proud of them and I failed to notice them on the roof when I was last there!        

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• # 75452
• Thu 20 Oct 2011 10:02 AM

Thanks folks, I'll make a note to remind myself to admire them next time!!

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• # 76020
• Thu 03 Nov 2011 06:10 AM

Hi

How would this scenario change if the solar panels are installed on a "rent a roof basis" whereby the solar panels are owned by anoth company and the hotel then benefits from a proportion of free electricity.

Regards

Acorn

• "Helping small acorns become large oaks"
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• # 76030
• Thu 03 Nov 2011 09:04 AM

Hi Acorn

This is an extremely interesting point.

On the one hand the hotel would not own the Solar panels and therefore cannot show them in their books as an asset. They are however deriving a cost saving by gaining free electricity which could be seem as a revenue stream and therefore could potentially attract income tax.

I think if I ever came across this it wsould have to be a call to HMRC for a ruling on the subject.

It would be toughie to prove the revenue gained by "renting the roof" unless it was fully metered then the argument would become which tariff applies.

Kind regards
Stuart

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