Solar Power: VAT

Treasury written question – answered on 9th September 2019.

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Photo of Seema Malhotra Seema Malhotra Labour/Co-operative, Feltham and Heston

To ask the Chancellor of the Exchequer, what assessment he has made of the implications for her policies of the statement by the Renewable Energy Association that the decision by HMRC to increase VAT on new solar-battery systems from five to 20 per cent in October 2019 could slow the uptake of solar-battery systems by years and contradicts the Government’s commitment to tackling climate change; and if she will make a statement.

Photo of Jesse Norman Jesse Norman Financial Secretary to the Treasury and Paymaster General

I refer to the assessment provided in my answer to PQ284318. The Government is committed to greening the UK economy and designed the changes for energy-saving materials to retain as much of the VAT relief as possible for UK households, while complying with EU law.

While the UK remains a member of the EU, the Government is obliged to make these changes. As all taxes are kept under review, it may be possible to amend these rules once the UK has left the EU.

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