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Written question asked by Lord Grayling (Conservative) on Thursday, 14 April 2022, in the House of Commons. It was due for an answer on Wednesday, 20 April 2022. It was answered by Lucy Frazer (Conservative) on Tuesday, 26 April 2022 on behalf of the Treasury.

Double Glazing: VAT

Question

To ask the Chancellor of the Exchequer, for what reason double glazing is not part of the package of energy improvements subject to zero VAT announced in his Spring Statement.

Answer

The Chancellor announced at Spring Statement 2022 that the VAT relief for the installation of energy saving materials (ESMs) will be expanded in Great Britain.

From 1 April 2022, complex eligibility conditions to access the relief have been removed and wind and water turbines have been reinstated as qualifying materials. Qualifying installations will also now benefit from a VAT zero-rate until April 2027. Overall, this represents an additional £280 million of support for investment in ESMs over the next 5 years.

However, the VAT relief for ESMs was not extended to double glazing. While double glazing does have energy saving properties, it is already a popular means to improve the energy efficiency of one’s home. The English Housing Survey suggests that more than 85 per cent of properties in England are already fully double glazed: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/445440/EHS_Energy_efficiency_of_English_housing_2013.pdf.

As such, providing tax relief as an additional incentive to install double glazing in one’s home would represent poor value for money.

Secondary information

Type
Written question
Reference
153766
Session
2021-22
Subjects
VAT Double glazing
Link
View this Written question on www.parliament.uk