Policy paper: VAT energy-saving materials relief

This tax information and impact note is about additional buildings and technologies that will benefit from VAT relief for the installation of energy-saving materials.

This measure extends the VAT relief to installations of energy-saving materials (ESMs) in buildings used solely for relevant charitable purposes, such as village halls or similar recreational facilities for a local community.

The measure also expands the scope of the relief to include:

• water-source heat pumps
• electrical batteries that store electricity generated by certain ESMs and from the National Grid
• diverters that allow excess electricity from certain ESMs to be used within a building where it is generated rather than exported to the grid

Source gov.uk

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