- HMRC has extended the VAT zero rate for energy-saving materials (ESMs) in residential accommodation until 31 March 2027.
- The relief has been expanded to include buildings used solely for relevant charitable purposes.
- The scope of the relief has been expanded to include electrical batteries, water-source heat pumps, and diverters.
- Certain preparatory groundworks for the installation of heat pumps are now included in the relief.
- The changes will take effect from 1 February 2024.
- The objective of the policy is to encourage the installation of ESMs to improve energy efficiency and reduce carbon emissions.
- The measures are implemented through The Value Added Tax (Installation of Energy-Saving Materials) Order 2024.
Source: marcusward.co
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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