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HMRC internal manual

VAT Energy-Saving Materials and Grant-Funded Heating Supplies

Grant-funded installations: scope of reduced rate for grant- funded installations

The reduced rate applies to the services of:

  • installing heating appliances and
  • installing, maintaining and repairing central heating systems and similar, and renewable source heating systems

in the homes of qualifying persons, to the extent that the supply is grant-funded.

The application of reduced rate is restricted to the supply and installation of items specified in the VAT Act 1994, Schedule 7A, Group 3. The relief does not extend to installations of other energy-efficient products, even if they are grant-funded.