§ Dr. IddonTo ask the Chancellor of the Exchequer if he will estimate the VAT rates levied on a private citizen on(a) 1 January 1999 and (b) 1 January 2000 installing energy saving measures using a contractor in (i) France, (ii) Italy and (iii) the UK. [104690]
§ Dawn PrimaroloThe VAT rates for the installation of energy saving measures by a private citizen on 1 January 1999 and 1 January 2000 are:
(i) For installation in France
On 1 January 1999 the VAT rate for the installation of energy saving materials was 22.5 per cent. France brought in a reduced rate of 5.5 per cent. for renovation and repair to private dwellings over two years old as part of their Autumn Budget in September 1999. The installation of energy saving materials is included within the scope of this reduced rate.(ii) For installation in Italy
On 1 January 1999 the VAT rate for the installation of energy saving materials was 20 per cent. Italy has applied to the European Commission to apply a reduced rate of 10 per cent. to the renovation, routine maintenance and repair of private dwellings from 1 January 2000. It is not clear whether Italy intend to include the installation of energy saving materials in their reduced rate.(iii) For installation in the UK
In July 1998 this Government introduced a reduced VAT rate of 5 per cent. for the grant-funded installation of energy saving materials in the homes of the less well off. All other installations of energy saving materials attracted VAT at the standard rate of 17.5 per cent. on 1 January 1999 and continue to do so.