Income Tax (Trading and Other Income) Act 2005 section 782A

Domestic microgeneration

Section 782A exempts from income tax the income an individual receives from selling electricity generated by a domestic microgeneration system, provided certain conditions are met.

• No income tax arises on income from selling electricity generated by a microgeneration system installed at or near the individual's home
• The individual must intend that the amount of electricity generated will not significantly exceed the amount consumed at the premises
• "Domestic premises" means premises used wholly or mainly as a separate private dwelling
• "Microgeneration system" has the same meaning as in section 263AZA of the Taxation of Chargeable Gains Act 1992