The UK small wind turbine market has been given a boost with the government's decision to reduce value added tax (VAT) on small renewable energy systems by 12.5%. The April budget made provision for sales tax to be reduced from 17.5% to 5% for domestic solar panels and energy saving materials. But at that time no provision was made for other renewables. After months of lobbying by the British Wind Energy Association and others, Customs & Excise conceded last month that the reduced rate of 5% VAT should also apply to small wind and hydro. The finance bill containing the new measure was expected to receive royal assent at the end of July.
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