Sunak announces 0% VAT on energy-saving materials

arty688

But without the 60/40 rule ?

So would 1 panel and a battery count as a system?

94JDH

arty688 said:

But without the 60/40 rule ?

So would 1 panel and a battery count as a system?

I'm sure there will be a work around, there was for the 60/40 rule -installers were just splitting the cost to get to that figure previously.

2nd_time_buyer

94JDH said:

arty688 said:

But without the 60/40 rule ?

So would 1 panel and a battery count as a system?

I'm sure there will be a work around, there was for the 60/40 rule -installers were just splitting the cost to get to that figure previously.

I suspect with full other books, most installers will be reluctant. Installing batteries is a relatively straightforward 1/2 days work. Adding solar panels is a lot more hassle and potential uncertainty e.g. scaffolding, weather, surveys etc. 

94JDH

2nd_time_buyer said:

94JDH said:

arty688 said:

But without the 60/40 rule ?

So would 1 panel and a battery count as a system?

I'm sure there will be a work around, there was for the 60/40 rule -installers were just splitting the cost to get to that figure previously.

I suspect with full other books, most installers will be reluctant. Installing batteries is a relatively straightforward 1/2 days work. Adding solar panels is a lot more hassle and potential uncertainty e.g. scaffolding, weather, surveys etc. 

And that's the likely issue- they can pick and choose at the moment because they are so busy.

SteveI99

Just seen this from the official HMRC notes 

The changes will reverse the 2019 legislative changes and widen the scope of the relief as set out below for installations of ESMs in Great Britain:

The relief will no longer be restricted by the social policy conditions or the 60% test

Wind and water turbines will be added back to the list of ESMs

A temporary zero rate will be introduced with effect from 1 April 2022 until 31 March

2027

Unless the government introduces further legislation to extend the period of the zero

rate, the installation of ESMs will revert back to the 5% reduced rate from 1 April 2027

QrizB

Bad news for DIYers, it seems the reduced rate of VAT only applies to installed products

I read it here:
https://www.bimblesolar.com/budget22

... and it seems to be confirmed here:
https://www.gov.uk/government/publications/changes-to-the-vat-treatment-of-the-installation-of-energy-saving-materials-in-in-great-britain/the-value-added-tax-installation-of-energy-saving-materials-order-2022

... where it says:

Who is likely to be affected

Businesses that provide and install energy-saving materials (ESMs) and customers who have the ESMs installed in England and Wales and Scotland.

and

This measure expands the VAT relief for ESMs available for domestic installations in Great Britain

and

Impact on individuals, households and families

This measure will positively impact individuals through lower prices charged by ESM installers, subject to the degree to which these businesses pass the VAT savings on to their customers.

Oh well.