- HMRC has published a new Policy Paper on the extension of energy-saving materials (ESMs)
- Installations of ESMs in residential accommodation will benefit from a temporary VAT zero rate until 31 March 2027
- The relief is extended to installations of ESMs in buildings used solely for relevant charitable purposes
- The scope of the relief is expanded to include electrical batteries, water-source heat pumps, and diverters
- Certain preparatory groundworks necessary for the installation of heat pumps are also included
- The changes apply from 1 February 2024
- The objective is to incentivize the installation of ESMs to improve energy efficiency and reduce carbon emissions
- The measures are implemented by The Value Added Tax (Installation of Energy-Saving Materials) Order 2024.
Source: deeksvat.co.uk
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.
