The Government is currently considering linking Council Tax bands to energy efficiency, meaning that the Council Tax level could be reduced for domestic properties where energy saving measures identified by a Green Deal assessment have been implemented.
The Treasury has, for some time, considered the introduction of a tax incentive as a means of encouraging homeowners to make their properties more energy efficient although, to date, these plans have never reached fruition.
Energy and Climate Change Secretary, Ed Davey, recently stated that he had “Campaigned for a green tax switch to incentivise energy saving. Now we need renewed vigour for that smarter tax. I’ll be working with (Buildings Minister) Don Foster to look at Council Tax discounts for energy efficiency to see if they will encourage people to sign up to the Green Deal.”
Whilst the Council Tax discount has been linked to the Green Deal, it appears that homeowners may not actually be obliged to commit to a Green Deal finance package. They will be required to obtain a Green Deal Report, however, to qualify for the proposed tax break.
