Client Newsletter

Improve your property with these ‘eco-tax’ savings

Plans that make green technology exempt from business rates and reduce VAT on energy-saving improvements have been brought forward by the Government to support landlords.

During the Spring Statement earlier this year, the Chancellor confirmed that the business rates exemption for green technology, such as solar panels and heat pumps, came into effect on 1 April 2022 – a year earlier than planned!

By making these technologies exempt from business rates, the Government hopes property investors across the UK can save an extra £35 million in the 2022/23 tax year, while also supporting the decarbonisation of buildings.

Alongside this exemption, the Chancellor also announced a 100 per cent relief for eligible low-carbon heat networks which have their own rates bill.

These two measures will support further steps to help property investors go green, including a five-year VAT reduction on energy savings materials (ESM), from five per cent to 0 per cent, which effect from 1 April 2022.

This temporary zero-rating will cover the installation of ESMs, including insulation and controls for central heating, in residential accommodation up until March 2027

Looking to make your property portfolio more energy and tax-efficient? Get in touch with our team today.