HMRC to increase VAT on solar panels
According to the Independent (1) the British government has decided to increase the VAT rate for solar panels from 5% to 20%, which is a huge hike considering that the Parliament has recently declared an environment and climate change emergency. Not only solar panels will suffer this VAT hike but materials for renewables and battery storage as well.
On the other hand, fossil fuels including gas and coal will not suffer any change and their VAT rate will remain at 5%.
The new rates will apply from 1 October 2019.
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