Energy: Carbon Emissions
The question
To ask the Chancellor of the Exchequer, if she will include (a) solar panels and (b) other net zero solutions on the salary sacrifice list.
Answered by James Murray
This government is committed to improving the quality and sustainability of our housing stock, through improvements such as low carbon heating, insulation, solar panels and batteries. We are funding the Warm Homes Plan with a total of £13.2 billion across the Parliament, including Barnett consequentials and £5 billion of financial transactions.
Installations of qualifying energy-saving materials, including solar panels, in residential accommodation and buildings used solely for a charitable purpose benefit from a temporary VAT zero rate until March 2027, after which they will revert to the reduced rate of VAT at five per cent. This support is worth over £1 billion.
From April 2017 the tax and employer National Insurance advantages of optional remuneration arrangements (OpRAs) have been removed, with a handful of exemptions.
Extending the list of exemptions would have a fiscal cost and would be of greatest benefit to those paying higher rates of tax while low-earning individuals with income below the Personal Allowance or the higher rate threshold would benefit less or not at all.
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