UK Government Expands VAT Breaks for Energy-Saving Materials to Include Charitable Buildings

• UK Government plans to expand VAT relief for energy-saving materials (ESMs)
• Currently, installations of ESMs in residential accommodation have a temporary VAT zero rate until March 31, 2027
• After that, a reduced rate of VAT of five percent will apply
• Proposed amendments to the Value-Added Tax Act will extend the relief to ESM installations on buildings used solely for relevant charitable purposes
• The relief will also include water-source heat pumps, electrical batteries that store electricity generated by certain ESMs and from the National Grid, and diverters that allow excess electricity from certain ESMs to be used within a building
• The change will be effective from February 1, 2024.

Source: answerconnect.cch.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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