Spring Statement: zero rate VAT for solar panels

Addressing the energy crisis, the Chancellor set out plans to remove VAT from investment in solar panels and heat pumps, but stopped short of offering grants

Chancellor Rishi Sunak said: ‘As energy costs rise, for next five years homeowners having solar panels and heat pumps installed will pay zero rate VAT, and there will be a zero rate for investment in wind and water turbines.’

To help households improve energy efficiency and keep heating bills down, the government will expand the scope of VAT relief available for energy saving materials including solar panels and wind turbines, so that households having energy saving materials installed pay 0% VAT. The current rate is 5%.

The zero rate VAT scheme will start on 1 April and will run until March 2027.

Your free features:

Breaking news and expert analysis
Customisable daily newsletters
Six free CPD learning modules each year
Personalised CPD tracker
Top 75 Firms league tables
Regulatory changes
Hardman’s Tax Data

Tax | 7.2m paid higher rate tax this year with number up by 16%

Tax | Income tax take up 53% since threshold freeze

Tax | Chancellor cuts VAT to 5% for kids’ meals, 10p rise in tax free mileage rate

Business | King’s Speech outlines closer trade ties with EU, less red tape

Tax | Highest ever tax take at £939bn in single year

Navigate

Tax Services

Your free features:

Sign up to Business & Accountancy Daily