In the Spring Statement, Chancellor Sunak announced the Government’s plan to bring forward an exemption that will make green technology exempt from business rates.
The exemption for green technology, such as solar panels and heat pumps, came into effect on 1 April 2022. This was brought forward one year from the original date of 1 April 2023.
Making these technologies exempt from business rates will save property investors an extra £35 million in the 2022-2023 tax year and support the decarbonisation of buildings.
In addition to the green technology exemption, the Chancellor also announced a 100 per cent relief for eligible low-carbon heat networks which have their own rates bill.
Lastly, a 5-year VAT reduction on energy savings materials (ESM) from 5 per cent to 0 per cent also took effect from 1 April 2022.
Between April 2022 to March 2027, the 0 per cent rate will be in effect to cover the installation of ESMs, including insulation and controls for central heating, in residential accommodation.
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