VAT energy saving materials relief – improving energy efficiency and reducing carbon emissions
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Detail of outcome
The government has announced at Autumn Statement 2023 that it will expand the VAT zero rate available on the installation of energy-saving materials by updating the list of materials that qualify for relief, and extending the relief to installations in buildings used solely for relevant charitable purposes.
The relief will also be extended to include certain groundworks necessary for the installation of ground and water source heat pumps.
Original consultation
Consultation description
At Spring Statement 2022, the government announced changes to expand the VAT energy saving materials relief in Great Britain, providing tax incentives worth approximately £280 million to improve the energy efficiency of homes over a five-year period to 31 March 2027.
This call for evidence builds on those changes and seeks views on 2 further potential areas of reform for this relief to meet its intended objectives more effectively. The first potential area of reform is the inclusion of additional technologies and the second is to extend the relief to installations of energy saving materials in buildings intended solely for a relevant charitable purpose.
HM Revenue and Customs and HM Treasury welcome discussions with interested parties and if you would like to meet with policy officials, please email us.
Documents
Last updated 11 December 2023 + show all updates
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Published outcome, including summary of responses.
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First published.