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By Pete Moore On June 25th, 2019

HMRC has blamed EU tax laws for the planned rise because they rule out lower VAT rates for energy saving equipment under state aid rules.

The European court of justice ruled in 2015 that energy saving materials should not have been receiving the reduced rate of tax. This led to an increase in VAT for solar systems installed at new-build homes in 2016, but did not affect the majority of houses which would require retrofitting. Those houses will now be affected by the higher rate.

Parliament cannot allow a lower rate of VAT for energy saving equipment. The EU says so. That’s what Remainers call sovereignty in their clown world. So it’s had to nod through a tax rise, “to comply with EU law”. Well done you lot.

Meanwhile, home coal supplies will continue to receive the lower VAT rate.

Ha ha ha ha.


  1. “The EU says so.”

    Did they though? The ECJ suggested that generally the reduced tax rates would be illegal. However in its VAT action plan for the government (which it gives every year to show the government where VAT policies may be or may not be in line with the law) the ECJ did not mention solar panels. So most likely it is technically against the rules but that, at the moment anyway, the EU aren’t that bothered about enforcing them. This is the British government implementing a British government policy and using the EU as a shield to allow them to do it.

    They also got rid of the feed-in-tariff, a scheme to offer financial rewards to homeowners using microgeneration. There was no EU law to get them to do it. There was no requirement for them to do so. There was no ECJ court judgement to do it. It was again a British government policy.

  2. The EU needs cash. When we Leave, they’re gonna gave to find out more ways to make up the shortfall.


  3. It’s always satisfying when Pete posts one of his ‘fake news’ anti EU diatribes to see a sensible and genuinely well informed regular like Seamus come along and demolish it.

  4. It appears that Seamus and Colm can’t see links. Let’s see what it says:


    House of Commons votes to approve the Value Added Tax (Reduced Rate) Energy-Saving Materials) Order 2019 by 247 to 209.

    This amends the scope of the reduced rate of 5% VAT for energy-saving materials to ensure that UK legislation complies with EU law.

    I know is an expert and all, but I would believe a HOC statement on what the HOC has done.

  5. Yes that is what the Government (who set the Order) says is the case. However the actual truth is not what you claim it is.

  6. Seamus, off topic, but my niece today was in the US Supreme Court Building and got to meet Justice Ginsburg!

  7. That’s class. Regardless how one thinks about the individual justices and their stance on the issues they are all individually brilliant people.