Tax increase on home renewable installations
As it stands, people wishing to install what are referred to as Energy Saving Materials (ESM’s) generally pay a reduced rate of VAT – 5%.
Following a public consultation the Government is proposing to remove this reduced rate for wind and water turbines, meaning they will be subject to the standard rate of 20%. Other ESM’s will have access to the reduced rate but under certain conditions.
The main trade body for the Renewables Industry, the REA, said the change would penalise people wishing to reduce their carbon footprints and risks setting back the decarbonisation of our homes and businesses by a number of years.
The full article from resource magazine is available here.
