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Chancellor urged to confirm there will be no VAT changes on energy saving materials till Budget 2016 at the earliest

An ACE-convened business coalition has today written to Chancellor George Osborne in the wake of the judgment by the European Court of Justice that the UK’s 5% reduced VAT rate on professionally installed energy saving materials breaches the 2006 VAT Directive.  The letter highlights the unhelpful nature of the judgment for those industries involved in the supply and installation of the measures potentially affected.  It also urges the Chancellor to make clear in next week’s Budget that any changes to the reduced VAT rate will be deferred until Budget 2016 at the earliest.

Read the letter here.

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