Energy: VAT
The question
To ask the Chancellor for the Exchequer, whether she plans to review the list of approved energy-saving technologies that receive VAT relief.
Answered by James Murray
The installation of qualifying energy-saving materials in residential accommodation and buildings used solely for a relevant charitable purpose benefits from a temporary VAT zero rate until March 2027, after which they will revert to the reduced rate of VAT at five per cent. Last year, a Call for Evidence (CfE) seeking views on additional technologies to potentially include within this relief was run. Following this CfE, three additional technologies were added to this relief.
The Government currently has no plans to add further technologies to this VAT relief. Nevertheless, the Government keeps all taxes under review as part of the policy making process. Changes to the tax system are announced at fiscal events in the usual way.
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