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Original poster

Value of solar panels

13 replies

PastaBeeandCheese · 13/10/2013 07:10

Looked at a house priced at £250 yesterday. I'm happy to pay the £250 and am thrilled to avoid 3% stamp. The vendor then mentioned she would like to sell the solar panels separately on advice from the EA.

I'm happy to pay for them but I'm concerned HMRC will see this as tax avoidance. I have no interest in that.

I'm going to email my solicitor today but obviously won't get an answer until tomorrow. Does anyone have any idea whether HMRC will see solar panels as a true F&F. They are the sort that sell electricity to the national grid and are owned by the vendor.

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DorrisM · 13/10/2013 09:02

Just say you don't want them.

Original poster
PastaBeeandCheese · 13/10/2013 10:00

Yes, I guess that's an option. I would like them though if I can buy them without attracting a 3% stamp bill!

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Choccybaby · 13/10/2013 10:48

I think you're right to be concerned about this. Looks dodgy to me from a stamp duty point of view.

I think it's cheeky to ask to sell them separately tbh. Presumably they're attached to the roof and integrated into the electric system. You wouldn't expect to pay extra for the boiler when you buy a house would you? (Ok not entirely the same but ykwim)

In any case what's she going to do if you say you don't want to buy them separately, go to the expense of removing them and making good? I doubt it.

lljkk · 13/10/2013 10:51

Vendor could take them with her, they are meant to be portable (we have panels & looked carefully, it would be worth taking them with us if new roof is suitable). I would take solicitor's advice on this, but I don't think it's tax dodging any more than other chattels being sold separately.

Merguez · 13/10/2013 11:17

If the vendor takes them with her they will no longer be eligible for the Feed-in Tariff payment as it does not apply to second-hand installations, which it would effectively become. So she is unlikely to want to do that.

Original poster
PastaBeeandCheese · 13/10/2013 13:02

Yes, I think legal advice is the way to go on this and hopefully I'll hear from my solicitor tomorrow. I think it might come down to how much she wants for them which I would know if I could get hold of the agent who is supposed to be working today.

I am happy enough to pay for them as we will benefit from FIT so even if she wanted a lot of money it would be worth while. I'm just frightened they will be included on value of house and we will land up with a large, unexpected tax bill.

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nosupermum · 14/10/2013 07:09

WE have solar panels on our house which we have just put up for sale. The estate agents (round here anyway) reckon they don't add any value in the eye of the buyer and don't tend to mention them in the particulars etc. A lot of the houses we have checked out on rightmove have them and none are specifically mentioned so I think it must be an across the board thing (in our area at least). I would be wary about paying more if I were you.
And for the record we love our panels :)

darksparrow · 14/10/2013 07:34

Are them mentioned in the schedule for the house? If so, they should be included in the £250k and not asked extra for.

Alwayscheerful · 14/10/2013 07:53

If the solar panels are generating income under the highest tariff I would buy them. We have 4kw of solar panels and they bring in an income of approx £40 per week, the tariff has been reduced for new installations and I doubt new installations would bring in £20 per week. Our tariff is index linked for 20 or 25 years.

I would think that if the owners can produce the original receipt for their solicitors, they will not have to charge you stamp duty however the solar panels will need to be classed as removable rather than fixtures and fittings.

Original poster
PastaBeeandCheese · 14/10/2013 08:21

That's interesting darksparrow. The consensus on the Internet seems to be that they would be considered land and therefore the separate transaction would be added to the value of the house meaning we'd pay 3% stamp which obviously I'm unwilling to do.

alwayscheerful that's exactly the situation. They generate approx £2,000 per year with many years left on max FIT so are well worry buying and I understand why the sellers want to sell them separately.

It's just the stamp duty issue. I emailed solicitor yesterday and she is efficient so expect to hear back today.

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Alwayscheerful · 14/10/2013 08:40

Excellent article dark sparrow.

I suspect the legal situation is unclear and it will take a test case to challenge HMRC regarding the stamp duty.

A competent solicitor will advise your correctly. I do know that solicitors require receipts for extras such as carpets and curtains in order to validate the price and to exclude the cost from the stamp duty calculation. A good solicitor will want a vendor to provide the original purchase receipts to cover themselves.

Original poster
PastaBeeandCheese · 14/10/2013 13:56

That's exactly the issue alwayscheerful there is no case law at all.

Solicitor says her view is they are land. The value is determined by them being fitted to the roof so they are a fitting. They are worth so much less if removed because of loss of FIT.

Shame. Will see what vendors say about this.

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