Housing: Energy

(asked on 16th November 2021) - View Source

Question to the HM Treasury:

To ask Her Majesty's Government what plans they have to reduce VAT on (1) home renovation, and (2) retrofit work, in order to support households to invest in energy efficiency measures.


Answered by
 Portrait
Lord Agnew of Oulton
This question was answered on 29th November 2021

A reduced rate of VAT at five per cent is maintained for some residential renovations, including those that increase the number of dwellings or renovating properties that have been empty for two years or more, subject to certain conditions.

Expanding the reliefs that are already available would come at a cost to the exchequer. For example, expanding the reduced rate already available to include all renovations and repairs is estimated to cost the Exchequer at least £3.75 billion a year.

While all taxes are kept under review, the Government has no plans to review the VAT treatment of home renovations.

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