The 0% VAT cut on energy-saving home renovations is “a welcome step for homeowners looking to make green renovations”, a tax expert has said. The move, announced by the UK chancellor today, could also encourage homeowners to invest in energy-efficient glazing products.
James Morley, business development director for Cornerstone Tax, said: “The 0% VAT cut is a welcome step, but more help is needed from the government to aid homeowners looking to make green property renovations. It seems that homeowners all over the country are seriously considering turning to green renovations, to combat the rising costs caused by the energy crisis. By making homes energy efficient, homeowners will save money in the long run and contribute to the UK’s sustainability targets also.”
Research conducted by Cornerstone Tax found that 36% of homeowners thought that making their home more energy efficient was a priority for 2022. But 45% found it too expensive to make their homes more energy efficient without government support.
James added: “The initial costs of making green renovations to your home is still a substantial obstacle for homeowners to overcome. Perhaps in the future, the government can provide much-needed support to homeowners who are looking to refurbish their home, to make it more eco-friendly. There’s evidently huge demand for greener homes, and homeowners are choosing to refurbish their current home rather than move to a new property.”
