The government outlined plans in December to increase the value added tax (VAT) on energy-saving materials, including home solar, to the standard rate of 20%, in the wake of a European Court of Justice ruling in June that Britain’s 5% rate was illegal under EU law.
However, the UK Treasury now says that the European Commission’s VAT Action Plan, due to be published on 23 March, sets out provisions to give powers over VAT rates back to national parliaments.
“The
