MOSCOW (Sputnik) — The United Kingdom applies a reduced rate — 5 percent instead of 20 — of VAT to energy-saving materials which are installed in the housing or which are supplied for installation in housing. European Commission evaluated that by doing so, the country fails to comply with the directive on the common system of value added tax and addressed the European Court of Justice regarding the matter. Last Thursday, Court of Justice ruled that the United Kingdom cannot apply a reduced rate of VAT to all housing as it is reserved to transactions relating to social housing only.
"UKIP believe that a thriving private rented sector is fundamental to tackling surging homelessness and combating our epic housing crisis. The way to control rents and ensure greater choice in the private rental sector is to liberate it from unnecessary costs and over regulation and we are the only party intending to do that."
The UKIP housing spokesman added that the “real loser” in the situation is the British tenant, who will now face higher rents.
“There is no logical reason why the UK needs to increase the level of VAT for energy efficiency products simply to stay in line with other countries who themselves have completely different private rental markets."
UKIP, a British Eurosceptic party, received the support of around 3.8 million voters in the general elections in May, 2015.
