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Energy-saving materials & heating - what is zero-rated?

07 April 2022      Andrea Marshall, Tax Specialist

Energy-saving materials and heating equipment (VAT Notice 708/6) has been updated with guidance on the introduction of the zero-rate announced in the Spring Statement.  The zero-rate applies to GB only.  (The reduced rate of 5% continues to apply in NI.)

Paragraph 2.21 includes "residential accommodation for students or pupils" within the list of residential accomodation that is eligible for the zero-rate.

From 1 April 2022 until 31 March 2027 the zero rate applies to the installation of certain specified energy-saving materials, including:

  • controls for central heating and hot water systems
  • insulation 
  • solar panels 
  • ground source heat pumps 
  • air source heat pumps 
  • micro combined heat and power units 
  • wood-fuelled boilers
  • wind turbines
  • water turbines 

Please contact Andrea if you have any questions.



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