UK tax expert warns that Brexit is damaging solar and wind power sector

Rachel Nutt
Rachel Nutt

A tax partner at one of the UK’s top 20 accounting firms has warned that British Brexit from the EU-bloc is damaging the solar and wind power industries.

Rachel Nutt, Head of Renewable and Sustainable Energy at MHA MacIntyre Hudson, said that British Independence fro the EU is creating a ‘challenging and uncertain time for renewable businesses’.

She explained: “Brexit, and the resulting lack of announcements about future subsidies which have to date supported much of the sector, is causing a period of inertia and stalling many new projects.

“It is creating a very challenging and uncertain time for renewable and sustainable energy businesses. 

 “We are all assured there is a huge power demand for the future, lack of grid capacity, and a need to hit green energy targets. However, the lack of clarity on funding has caused a significant slowdown in the market. 

“Even with the advent of more  innovative battery storage capacity and falling solar panel prices, the sector needs a new subsidy announcement to gain serious momentum in the areas of on shore wind and solar.

“The industry is also facing a number of other challenges around new tax law. The new Transactions in Land legislation could result in many large scale projects being subject to the higher tax charge of income tax rather than capital gains tax. 

“The future demand for grid capacity is also likely to be a major challenge. The push into BPVs (battery powered vehicles) –  and lack of capacity on the grid in the areas where it is most needed –  is likely to be a real practical barrier to growth without significant investment.”

With more than 580 staff, MHA MacIntyre Hudson is the UK member of Baker Tilly International, one of the world’s largest independently-owned business advisory firms.

Pixie Energy

Pixie logo Pixie Energy is an incubator and a facilitator of strategic research and project work, focusing on energy regulation, policy and markets at the local and national level. Find out more about Pixie Energy here.

Local Energy Matters: Scotland

Local Energy Matters: Scotland is a free-to-download brochure with a focus on energy tariffs in the two Scottish electricity distribution regions, as well news on local energy and low-carbon schemes.

Previous editions can be download here.

Scottish energy market overview

You can read an overview of the Scottish energy market here.

Scottish Government energy feed