The Budget and the annual Finance Bill
This briefing examines the way that Parliament scrutinises the Government's proposals for taxation, set out in the annual Budget statement.
Documents to download
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VAT on solar panels and other energy-saving materials (145 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).
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, and The Value Added Tax (Installation of Energy-Saving Materials) Order 2023, which amended the 1994 Act.
Documents to download
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VAT on solar panels and other energy-saving materials (145 KB , PDF)
Related posts
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Tax-free shopping for international visitors
A debate on tax-free shopping for international visitors is to be held in Westminster Hall on 7 September 2023 at 3pm. The subject has been chosen by the Backbench Business Committee, and the debate was requested by Sir Geoffrey Clifton-Brown. The debate will last 90 minutes.
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The High Income Child Benefit Charge
The High Income Child Benefit Charge provides for Child Benefit to be clawed back through the tax system from families where the highest earner has an income in excess of £50,000.
