VENSAV2020 - History of the reduced rate: extension of relief in 2000
Installation of energy-saving materials in all homes
As domestic consumers paid 5% VAT on domestic fuel and power, there was therefore a disincentive to improve energy efficiency if VAT on energy-saving products remained at the then standard rate of 17.5%. Consequently, with effect from 1 April 2000, the scope of the reduced rate was extended to the supply and installation in all residential accommodation or charity buildings whether grant-funded or not. For charity buildings this was the case until 1 August 2013 when the relief was withdrawn. This relief was subsequently reinstated on the 1 February 2024 (See VENSAV3101).
The energy-saving materials included in the relief were:
- insulation for walls, floors, ceilings, roofs, lofts, water tanks, pipes and other plumbing fittings
- draught stripping for windows and doors
- central heating system controls
- hot water system controls, and
- solar panels