The measure extends the temporary VAT zero rate for the installation of energy-saving materials (ESMs) in residential accommodation in the UK until 31 March 2027, after which it reverts to the reduced rate of 5%. It also expands the relief to include buildings used solely for relevant charitable purposes and adds technologies such as electrical batteries, water-source heat pumps, and diverters. The policy objective is to incentivize the installation of ESMs to improve energy efficiency and reduce carbon emissions. The measure will take effect from 1 February 2024. The estimated impact on the Exchequer is outlined for the years 2023 to 2029.
Source gov.uk
