Lewes MP Maria Caulfield has raised her concerns about increases in the VAT on the installation of renewables such as solar panels to meet a new EU directive.
In the House of Commons Maria Caulfield MP asked the Secretary of State for Business, Energy and Industrial Strategy “HMRC is having to change VAT rates from 5% to 20% for the installation of renewables, such as solar panels, to meet the EU VAT directive. Will the Minister commit to reversing that decision when we leave the EU?”
The Secretary of State Andrea Leadsom said “My hon. Friend is right. We will be able to choose our own VAT rates.”
Maria Caulfield MP said “Many people are now more concerned about being conscious of our environment and where our electricity comes from. One way to encourage people to consider installing renewable energy sources such as solar panels at home is to keep the cost low, but the EU now believes that we must charge 20% rather than 5% VAT on the installation of renewables. I, and I’m sure many of my environmentally minded constituents, think that we should be keeping these costs down to reduce CO2 emissions. I am pleased the Secretary of State has confirmed that once we leave the EU we can set this issue right and reduce the VAT on the installation of renewable energy.”