The Chancellor of the Exchequer, Jeremy Hunt, has today announced in his Autumn Statement that the government will expand VAT relief on the installation of energy-saving materials (ESMs) in buildings used solely for charitable purposes.
CFG warmly welcomes the announcement. In May, CFG responded to the government's call for evidence on its proposals to reform energy-saving materials VAT relief.
Following consultation with members, CFG submitted evidence that showed that extended VAT relief would incentivise many charities to install ESMs.
A survey conducted by CFG showed that the vast majority of respondents were intending to install ESMs (84%) with controls for central heating and hot water systems, solar panels and insultation being the most popular measures.
Two thirds of respondents (75%) said that VAT relief was important in deciding whether or not to install energy saving measures.
Richard Sagar, Head of Policy, Charity Finance Group, comments: “We are delighted that the government has listened to CFG's calls on this key issue.
"This additional financial incentive might make all the difference between installing energy-saving measures and not doing so. Today's announcement is positive support for the sector mission to reduce energy consumption and costs.
"We'd like to thank all those charity members who took part in our survey and spoke to us about the government's call for evidence. Without that engagement, it is unlikely that this announcement would have been made today."
The reforms will be implemented UK-wide in February 2024.
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