ExHA believes there is a clear role for the Land and Building Transaction Tax (LBTT) to operate to support wider government objectives. It is clear that the principle of using tax to encourage energy efficiency investments has already been established (e.g. through VAT reductions on specified materials at UK level and, at a Scottish level, through requirements within the Climate Change Act for local authorities to develop relief on council tax), and evidence suggests it could be effective in doing so .
Using the LBTT to incentivise energy efficiency would help deliver legislative commitments to end fuel poverty (Housing Act) and tackle Climate Change (Climate Change Act) while reducing energy demand. Moreover, the Government’s aim to support economic recovery through the creation of jobs is also highly relevant here.
We therefore fully support the principle of using the tax to incentivise investment in energy efficiency in homes and help reach Government objectives.
Read the Alliance response to the consultation LBTT ExHA response final
Read the Alliance briefing for the parliamentary debate exha brief for chamber debate on Stage 1 LBTT 25April13