Commentary

RCB/26/12 VAT—withdrawal of the reduced rate of VAT for energy saving materials installed in buildings used for a relevant charitable purpose – infringement proceedings by the European Commission

Part V16 Forms and other HMRC material

RCB/26/12 VAT—withdrawal of the reduced rate of VAT for energy saving materials installed in buildings used for a relevant charitable purpose – infringement proceedings by the European Commission

RCB/26/12 VAT—withdrawal of the reduced rate of VAT for energy saving materials installed in buildings used for a relevant charitable purpose – infringement proceedings by the European Commission

Revenue & Customs Brief, Issue 26. 20 August 2012

Purpose of this Brief

At Budget 2012, the Government announced its intention to withdraw the reduced rate for energy saving materials (ESM) installed in buildings used solely for a relevant charitable purpose. The Government is taking this action following pre-infraction communication with the European Commission (EC) who pointed out that this reduced rate is not permitted under European law. This Brief seeks views on two questions arising from the Budget 2012 announcement.

On 21 June 2012, the EC published a Reasoned Opinion which is the first public step in the process of taking infringement action against the UK in respect of its reduced rate for ESM (whether installed in residential accommodation or in buildings intended for use solely for a relevant charitable purpose). This Brief explains that the Government's view is that the reduced rate for the installation of ESM in residential

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