There’s been talk in the industry of reducing VAT on energy rated windows, or providing grants for people to upgrade their homes to double glazing. But, of course, the Government is unlikely to seriously consider these options as they cost the treasury money.
It seems, though, that the Government has been thinking of an alternative solution for encouraging people to upgrade the energy efficiency of their homes.
Wait for it. Drumroll, please…..
Penalise people who do not have double glazing!!!
Brilliant!
Instead of costing the taxman money, this will bring in loads of extra revenue.
According to the Telegraph:
Home owners who fail to introduce green measures could be forced to pay more Council Tax.
Under the new proposals, the Government would increase Council Tax and Stamp Duty for millions of homes that are not energy efficient.
It could also mean families are unable to sell their home unless they spend tens of thousands of pounds on getting their properties insulated and double-glazed.
The measures are widely expected to come into force this autumn.
Seriously, if this actually happens I will vote Labour, and tattoo ‘Gordon Brown is a very nice man’ on my bottom. I will also offer my services as a ‘double glazing warden’ and will assist the Government by reporting homes with single glazed windows and doors.
Tags: council tax energy efficiency, double glazing grants, energy efficient double glazing, energy efficient windows, insulation and double glazing, stamp duty energy efficient homes, tax double glazing
This has been on the cards for some time. The government are looking into organising low cost property loans which will be repaid from the savings in energy cost, linked to the property and not the owner so it will stay with the property and not the occupant.
The incentive to take out the loans will be a reduction in council tax but in order to make it work council tax will probably need to increase in order to offer an incentive to take out the loan.
We can only hope it does not go the way of the Warmfront scheme which excludes small companies
I do not believe there was ever any chance of the VAT rate being dropped to 5% on energy rated windows … there would simply be far too much ambiguity as to the amount apportioned to a contract value over and above the cost of non energy rated windows … unless people were actually thinking the reduction in VAT would apply to the full order value … ?!?
getting back to the real world thank God we do not have many more months with this government in power …
I am happy to eat me words should either of the above turn out to be reality … : )
Heard this was going to happen a few weeks ago, sounds good to me, forces people to get spending again.
If this happens AND works, we are going to need to be ready for surge in demand for windows ! It won’t have a direct effect on conservatories but will theire sales get dragged up as well by a kind of halo effect or will they go down because people are focusing on windows.
And could a new conservatory be reclassified as a loose collection of base, roof and REALLY energy efficient windows.
Aha, a plan – build conservatories without windows and then get a cheap loan to put the windows in ! A conservatory without windows would be really inefficent and no one will want to get found out by the double glazing warden.
Hmm, I’m not convinced by this move at all. I don’t think it would actually force that many people to buy double glazing as would be expected.
Moving home is a costly enough process without further costs required in order to market a house successfully or avoid extra stamp duty. Plus it may be more cost effective to leave the house as is and take a minor hit on the stamp duty anyway, so people may chose to artificially increase the house price instead to compensate. Plus homes already with DG would increase in value due to the perceived added value of the home and lower CT rates.
This, however, could be a good move in combined with a lower VAT rate for DG and energy efficient products. Surely if the Gov want us to be green and reduce carbon emissions as a whole for the country, then they need to put their money where their mouth is too.
its all very well for the double glazing industry but has anyone stopped to think why some people still have single glazed windows?the vast magority are working class people who are already paying though the nose in taxes to this country and can not afford the thousands it costs to have them replaced.its ok for the countless millions who never put a penny into the system because they live in rented accomadation and get it all done for them.some people dont have that priviledge and are just over the basic living allowence so never get any help.its ok saying that the government is implementing a national window scrappage scheme but really how much cheaper are upvc windows going to be,im sure the double glazing firms wont want to lose out so will bump their prices up so in reality after the government scheme price is taken off poor hard working people will not benefit at all.its just another stelth tax on the worker no wonder so many are upping sticks and leaving in droves to other countries.over the last 3yrs ive had my windows replaced and had central heating installed in the attempt to save money and help the climate. no ive not made a saving and no according to my energy supllier i havent made any difference to my carbon footprint.its the biggest load of rubbish ive ever heard.
Jenny Jackson
What is your point? Is your house your home and are you proud of it or is it just somewhere to sleep. New windows improve the appearance and will make you energy savings. How do you know youv’e not saved any money? Nobody said you would save a fortune or did they?