Extension of VAT Relief for Energy-Saving Materials to Charitable Buildings and Additional Technologies

• 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.