Sunak cuts VAT on energy saving technologies
The UK Chancellor Rishi Sunak outlined plans to remove VAT on energy saving materials and technologies which he announced in his Spring Statement.
The Chancellor announced plans to scrap VAT on domestic energy saving measures including insulation, solar panels and heat pumps.
Sunak confirmed that from April VAT is to be scrapped entirely on the installation of a range of energy saving measures all of which are to be zero-rated for at least the next five years.
VAT is also to be cut on wind and water turbines, after the government said it would remove "complex eligibility conditions" so that these technologies can be classed as energy saving measures.
He said: "As energy costs rise, we know that energy efficiency will make a big difference to bills.Thanks to Brexit, we are no longer constrained by EU law. So I can announce that for the next five years, homeowners having materials like solar panels, heat pumps or insulation installed will no longer pay 5% VAT. They will pay zero.
“We will also reverse the EU's decision to take wind and water turbines out of scope and zero rate them as well. And we will abolish all the red tape imposed on us by the EU."
The Chancellor announced plans to scrap VAT on domestic energy saving measures including insulation, solar panels and heat pumps.
Sunak confirmed that from April VAT is to be scrapped entirely on the installation of a range of energy saving measures all of which are to be zero-rated for at least the next five years.
VAT is also to be cut on wind and water turbines, after the government said it would remove "complex eligibility conditions" so that these technologies can be classed as energy saving measures.
He said: "As energy costs rise, we know that energy efficiency will make a big difference to bills.Thanks to Brexit, we are no longer constrained by EU law. So I can announce that for the next five years, homeowners having materials like solar panels, heat pumps or insulation installed will no longer pay 5% VAT. They will pay zero.
“We will also reverse the EU's decision to take wind and water turbines out of scope and zero rate them as well. And we will abolish all the red tape imposed on us by the EU."
