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

  • 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.

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