VENSAV2080 - History of the reduced rate: Introduction of a time-limited zero rate of VAT and a reversal of the 2019 restrictions in Great Britain

The Government announced at Spring Statement 2022 with effect from 1 April 2022:

• The permanent reversal of the 2019 restrictions in Great Britain;

• A temporary zero rate for the installation of energy-saving materials in residential accommodation in Great Britain for the period 1 April 2022 to 31 March 2027 (after which the rate will revert back to the reduced rate of 5%); and

• Wind and water turbines would qualify as energy-saving materials in Great Britain.

Note: These changes are applicable to Great Britain only and do not apply to Northern Ireland. They were introduced by a new Group 23 to Schedule 8 of VATA 1994 (as inserted by the Value Added Tax (Installation of Energy Saving Materials) Order 2022.