Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason the Government plans to increase VAT on domestic solar panels and batteries from 5 per cent to 20 per cent in Autumn 2019.
The Government is currently amending VAT rules regarding the installation of certain energy saving materials in order to comply with a ruling of the Court of Justice of the European Union while maintaining as much of the relief as possible. The VAT treatment of the vast majority of solar panel installations is expected to be unaffected by the changes.
Under UK law, battery storage systems have always been subject to VAT at the standard rate of 20%.