Taxation of state pension
The state pension is liable to income tax, though pensioners are unlikely to pay tax in practice if their only income is the state pension.
Documents to download
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VAT on solar panels and other energy-saving materials (176 KB , PDF)
A zero-rate of VAT on the installation of energy-saving materials (ESMs), including solar panels, in residential accommodation, was introduced on 1 April 2022. At the time, it only applied to England, Scotland, and Wales.
Following a new agreement between the UK and the EU, the zero-rating was also implemented in Northern Ireland on 1 May 2023.
The relief is set to last until 31 March 2027. On 1 April 2027, the VAT rate on such supplies will return to 5% (the reduced rate).
Following a 2023 call for evidence, the Government has extended the eligibility for the relief to include other technologies, as well as extending the eligibility for buildings used for a relevant charitable purpose.
UK VAT law is consolidated in the Value Added Tax Act 1994. These changes were implemented through statutory instruments: The Value Added Tax (Installation of Energy-Saving Materials) Order 2022, The Value Added Tax (Installation of Energy-Saving Materials) Order 2023, and The Value Added Tax (Installation of Energy-Saving Materials) Order 2024 amended the 1994 Act.
Documents to download
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VAT on solar panels and other energy-saving materials (176 KB , PDF)
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Income tax allowances for married couples
This briefing discusses the two income tax allowances that married couples and civil partners may be entitled to claim.
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VAT and Churches
Construction work to repair buildings, including historic churches, is charged VAT at the 20% standard rate. The Listed Places of Worship Grant Scheme provides grants to mitigate the VAT costs for these repairs.
