Extension of VAT zero rate to energy-saving materials and installations

• VAT zero rate extended to include installation of electrical battery storage, water-source heat pumps, and diverters retrofitted to energy-saving materials
• Specific groundworks for certain types of heat pumps also included
• Zero rate extended to include installation of energy-saving materials in buildings used solely for a relevant charitable purpose
• Value Added Tax (Installation of Energy-Saving Materials) Order 2024 implements this measure
• Changes apply from 1 February 2024
• Zero rate applies until 31 March 2027, then reduced VAT rate applies.

Source: taxscape.deloitte.com

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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