Open consultation

Draft legislation: VAT (Reduced Rate) (Energy-Saving Materials) Order 2019

Summary

We are seeking views on draft legislation that amends the scope of the reduced rate for energy-saving materials to ensure consistency with EU law.

This consultation closes at

Consultation description

Following a consultation in 2015 to 2016, we want your views on updated draft legislation to amend the scope of the VAT relief for the installation of energy-saving materials (ESMs) in residential accommodation. The changes retain as much of the relief as possible, while ensuring compliance with EU law (please see the Court of Justice of the European Union ruling in 2015).

The proposed amendments will:

  • maintain the reduced rate on installations of ESMs in residential accommodation for recipients who are aged 60 or over or receiving certain benefits, and for housing associations
  • remove the reduced rate for the installation of wind and water turbines
  • maintain the reduced rate for all other installations in residential accommodation where the cost of the materials does not exceed 60% of the total cost of installation

Before responding, you can read the documents on this page:

  • draft legislation
  • draft tax information and impact note
  • draft explanatory memorandum
  • draft guidance

Documents

(Draft) The Value Added Tax (Reduced Rate)(Energy-Saving Materials) Order 2019

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If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gsi.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

(Draft) explanatory memorandum

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If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gsi.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

(Draft) Tax information and impact note

This file may not be suitable for users of assistive technology. Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gsi.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

(Draft) VAT: guidance on changes to energy-saving materials

This file may not be suitable for users of assistive technology. Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gsi.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Ways to respond

Email to:

esm.consultation@hmrc.gov.uk

Write to:

ESM Consultation Responses, VAT Reliefs Team, Room 3/35, 100 Parliament Street, London, SW1A 2BQ.

Published 8 April 2019