Solar Panel Guide Discussion

orrery

Sirlaughalot wrote: »

I assume the solar panels now become the property of the liquidator so where does that leave the homeowner?

In a position to buy the installation for almost nothing .... ?

Sirlaughalot

orrery wrote: »

In a position to buy the installation for almost nothing .... ?

That`s what i would like to think as the cost and logistics of taking them down would kill the option of trying to sell them off.

Perhaps a company might buy the whole operation at a bargain price leaving the creditors and suppliers of the previous business up *hit creek without a paddle.

What legal rights do the effected homeowners have if a new company takes over the operation are the original contracts worth anything?

John_Pierpoint

Interesting thought anyone got the details of the FiT contract, could I lease my proven installation to an investor?

Sirlaughalot

John_Pierpoint wrote: »

Interesting thought anyone got the details of the FiT contract, could I lease my proven installation to an investor?

Hi John,

Not sure i`m no legal expert but thinking about it when a company is liquidated the company is no longer a going concern and the assets are sold off. Don`t know how this would work once the company is finally liquidated . Who is getting the FIT as it stands and in the years to come?

SL

zeupater

Hi

There's a difference between the current company setup being a going concern and the assets being sold on as being the basis of a going concern ... investors & creditors lose out, assets are re-valued and offered for sale as a whole in order to keep the administrator's burden & costs down ....

The likelihood of splitting the assets down to individual roofspace parcels and offered for sale when this happens are pretty low in my view ... each roof would probably just (/not even) pay the administrator's fee for disposal .... although this could be pretty useful to discourage others from considering this form of restructuring ...

HTH
Z

Sirlaughalot

zeupater wrote: »

Hi

There's a difference between the current company setup being a going concern and the assets being sold on as being the basis of a going concern ... investors & creditors lose out, assets are re-valued and offered for sale as a whole in order to keep the administrator's burden & costs down ....

The likelihood of splitting the assets down to individual roofspace parcels and offered for sale when this happens are pretty low in my view ... each roof would probably just (/not even) pay the administrator's fee for disposal .... although this could be pretty useful to discourage others from considering this form of restructuring ...

HTH
Z

I thought a business could be sold on as a going concern if it was in administration by the administrator/reliever.
Liquidation was final everything in the business is dissolved/liquidated including all assets and funds.
But i`m no expert just curious as to how all this would all pan out as you say the asset sales per household(panels, inverter ect) would barely cover the costs of liquidation process!

Could be a nice earner for the homeowner if it is status quo. 20% free usage of daytime electric for no outlay
SL

zeupater

Sirlaughalot wrote: »

I thought a business could be sold on as a going concern if it was in administration by the administrator/reliever ....

Hi

That's effectively what I was trying to 'say'. There are a number of reasons for going into administration but I'd reckon that the most common would be financial concerns regarding cash-flow or debt. Without the level of debt, with better reserves, or with a more robust business model, a failed company (a non-going concern), or division of that company, would (/could) be considered as being a going concern and fit for refinancing, restructuring or sale.

HTH
Z

John_Pierpoint

What I was trying to say is that the FiT contract is obviously tied to the building and the date it was installed/registered.
Is that contract fully transferable to a new owner of the contract not the building?
If so what is the mechanism?
What is likely to be the valuation method to arrive at the present capital value of the future income?
Would the transaction be free of potential CGT or (more likely?) give rise to a capital loss, or would it be part of the principle private residence relief?
Would HMRC notice what was happening for the purposes of IHT,. if the contract was given away?

Obviously the present potential liquidation, if it is not some dodgy "prepack", is likely to be sold as an investment; though a surveyor/accountant or three is going to be kept busy doing the "due diligence". Are all the installations the same technology and registered with the same FiT provider?

That said, if the administrator/liquidator has an installation or preferably a terrace of installations within 10 miles of my post code, get in touch.;)
I bet there is a clause in there somewhere that says the multiple FiT yield is no longer tax free - a bit like buying someone else's life insurance policy?

Martyn1981

John_Pierpoint wrote: »

That said, if the administrator/liquidator has an installation or preferably a terrace of installations within 10 miles of my post code, get in touch.;)
I bet there is a clause in there somewhere that says the multiple FiT yield is no longer tax free - a bit like buying someone else's life insurance policy?

Hiya John, have definitely read articles where RaR companies have sold 'batches' of properties (possibly 1,000 or more) to other companies/investors. So the contracts are definitely transferable.

How much, is presumably simply a negotiated figure, looking at future income, and anticipated outgoings etc etc.

Tax wise, I think FiT is only tax free on your main property (might have that definition wrong, sorry), but I'm sure you have to pay tax on any income from second property etc, as it is 'income' and therefore subject to income tax.

Old fact, and no idea if it's ever been clarified, but there is some clause that FiT and export income is tax free, for systems generating upto 120% of annual leccy consumption. But is that your consumption, or an average consumption, or could you just stick a leccy heater in the garden if it got a bit tight? I dunno!

Mart.

John_Pierpoint

To my way of thinking, buying a batch of Rent a Roof installations is similar to buying a block of domestic garages, with maintenance but without the problems of finding a tenant.

It looks like there was a window of opportunity for business to get free depreciation (ie write the whole lot off against tax) that closed in 2012 and the situation for VAT has now become complex. It is a 5% investment unlike double glazing at 20% ?

http://www.greenaccountancy.com/resources/tax-faqs/feed-in-tariff/

The own consumption rule is applied and the national Grid is just treated as a giant battery.

Looks like the tax man has it well stitched up in red tape now.

http://www.hmrc.gov.uk/manuals/bimmanual/bim40510.htm