Neil Coyle – 2016 Parliamentary Question to the Department for Energy and Climate Change

The below Parliamentary question was asked by Neil Coyle on 2016-02-08.

To ask the Secretary of State for Energy and Climate Change, what discussions she has had with (a) the Chancellor of the Exchequer and (b) HM Revenue and Customs on proposals to increase VAT rates on solar panels.

Andrea Leadsom

I have had no discussions with my rt. hon. Friend Mr Chancellor of the Exchequer or HM Revenue and Customs on the proposals to amend the application of VAT to energy saving materials. The changes stem from a legal judgement in the European Court which found that the reduced rate of VAT on energy saving products had been applied too widely. As part of the amendments, HMRC recently consulted on removing solar panels from the list of measures eligible for the reduce rate of VAT. They are currently considering the responses to that consultation.