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The Value Added Tax (Installation of Energy-Saving Materials) Order 2024

28 February 2024
Amends/Commences: Value Added Tax Act 1994

Comes into force: 1st February 2024

Jurisdiction: UK

A zero-rate of VAT applies to installation of energy-saving materials* in buildings used solely for charitable purposes, until 31st March 2027. From 1st April 2027, a reduced rate of VAT will apply. The reduced rate of VAT is currently 5%.

*Energy-saving materials include: insulation for walls, flooring, ceilings, roofs, water tanks, pipes and other plumbing fittings, draught stripping, central heating system controls, hot water system controls, smart diverters, electrical storage batteries, solar panels, ground source heat pumps, air source heat pumps, micro combined heat and power units, boilers designed to be fuelled by wood or straw, wind turbines, and water turbines.

The zero-rate / reduced rate of VAT also applies to the installation of equipment or groundworks necessary to install energy-saving materials. 

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