The answer is blowing in the wind

JULIE BUTLER considers the tax treatment of wind farms.

WIND FARMS ARE a very controversial subject they have been described as a 'horrendous blot on the landscape'. However many people consider wind turbines graceful and think that they represent a cleaner sustainable source of energy for the future. This is all very well but what of the tax position? To date there is no specific direction from case law and there are no clearly presented rules contained within the Revenue manuals. Wind farms are of interest to investor developer and landowner. Venture capital trusts have been set up to invest in companies that develop construct and operate wind farms. So what are the facts behind the operation?

• Landowners have the opportunity to receive regular income for up to 25 to 30 years with no additional labour or expense required.
• Depending on...