22 Oct 2014
The government offers a reduction in VAT for certain ‘energy saving’ products. Double glazing VAT is charged at 20%, despite being incredibly efficient.
The government offers a reduction in VAT for certain ‘energy saving’ products. Currently, these home improvements products such as wall, floor and loft insulation, solar panels, wind turbines, wood-fuelled boilers, and air-source heat pumps.
Amazingly though, double glazing does not qualify for this reduction: even though it is one of the most effective, and most popular, methods used by homeowners to improve the energy efficiency of their home.
Despite being one of the most effective, and easiest, ways to reduce energy consumption in a home, double glazing is still liable for the full VAT charge of 20%.
At The CPA, we believe that this is full charge is completely unfair. It’s been proven that property with single glazing will suffer heat loss of up to 20%. By upgrading to double glazing, the energy consumption of a property can be massively reduced, increasing its energy efficiency.
If double glazing VAT was reduced, we believe that many more homeowners would be encouraged to upgrade their existing glazing and to thus reduce the energy consumption of their property.
Double glazing has been proven to be one of the most effective energy saving technologies, suited to a broad range of properties and homeowners. Despite this broad appeal and the large, existing demand for such an energy-reducing project in the market, VAT is still charged at the full amount.
We believe that the government’s position on VAT charges for energy efficiency products is confused, illogical and unfair; failing to take into account the real measures, such as double glazing, that are already popular amongst homeowners looking to lower their energy consumption. If the government is serious about increasing the energy efficiency of the country’s homes, a reduced rate on double glazing similar to that on other products such as solar panels would really help to encourage homeowners and businesses to upgrade to double glazing and reduce the amount of energy they consume, helping the environment.
Here at the Consumer Protection Agency, we’re leading the fight against unfair VAT charges on home improvement products such as double glazing. Join us in our fight against VAT or give us a ring on 01462 850064 for more information about any of our services.