Housing: Energy

Treasury written question – answered on 29th November 2021.

Alert me about debates like this

Photo of Baroness Ritchie of Downpatrick Baroness Ritchie of Downpatrick Non-affiliated

To ask Her Majesty's Government what plans they have to reduce VAT on (1) home renovation, and (2) retrofit work, in order to support households to invest in energy efficiency measures.

Photo of Lord Agnew of Oulton Lord Agnew of Oulton Minister of State (HM Treasury), Minister of State (Cabinet Office)

A reduced rate of VAT at five per cent is maintained for some residential renovations, including those that increase the number of dwellings or renovating properties that have been empty for two years or more, subject to certain conditions.

Expanding the reliefs that are already available would come at a cost to the exchequer. For example, expanding the reduced rate already available to include all renovations and repairs is estimated to cost the Exchequer at least £3.75 billion a year.

While all taxes are kept under review, the Government has no plans to review the VAT treatment of home renovations.

Does this answer the above question?

Yes0 people think so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.