The government is publishing a so-called ‘call for evidence’ on options to reform the VAT relief for the installation of energy saving materials.
This call for evidence will discuss whether to include additional technologies and the possible extension of the relief beyond simple residential use - for example, to include buildings used for a relevant charitable purpose.
The installation of certain energy saving materials in residential accommodation already benefits from VAT relief. However, there have been requests for further changes to make the relief more effective and easier to access - this new call for evidence may address that.
However Christy Wilson - associate at real estate law consultancy Katten UK - says the call for evidence is welcome but the government could simply have implemented a faster response.
Wilson says: “Whilst it is a good thing that the government are taking steps to ensure that the installation of energy saving materials is more affordable, the fact that a call for evidence has been announced rather than an active measure or draft legislation does mean that any reform on this topic will not come for a while.
“It could be argued that the government want to ensure that the reforms are appropriate and therefore need industry evidence in order to help them do this, but equally the government is somewhat delaying the process and time is of the essence with climate positive measures.”
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