Jim Shannon – 2016 Parliamentary Question to the Department for Energy and Climate Change
The below Parliamentary question was asked by Jim Shannon on 2016-02-02.
To ask the Secretary of State for Energy and Climate Change, what the implications for her policy on the solar power industry are of the recent European Court of Justice decision on levels of VAT.
Andrea Leadsom
HMRC has consulted on removing solar technologies from the list of measures that are currently eligible for the lower (5%) rate of VAT. They are currently considering the responses to the consultation, which closed on 3rd February[1].
If it is decided that a change to VAT is appropriate, we will consider options on how to maintain a suitable rate-of-return for investors.
[1] https://www.gov.uk/government/consultations/vat-changes-to-the-reduced-rate-of-vat-for-the-installation-of-energy-saving-materials
