Taxation of Chargeable Gains Act 1992 section 263AZA

Renewables obligation certificates for domestic microgeneration

Section 263AZA exempts from capital gains tax any gain made by an individual on the disposal of a renewables obligation certificate, provided the certificate relates to electricity generated by a small-scale renewable energy system at or near the individual's home.

• Gains on the sale of renewables obligation certificates are exempt from CGT where the certificate was obtained through electricity generation by a qualifying microgeneration system
• The microgeneration system must be installed at or near the individual's own home, meaning premises used wholly or mainly as a separate private dwelling
• The individual must intend that the electricity generated will not significantly exceed the electricity consumed in the home
• A microgeneration system must rely mainly on renewable energy sources and must not exceed the generating capacity limits set out in the Energy Act 2004