The Value Added Tax (Installation of Energy-Saving Materials) Order, SI 2024/24, expands the list of energy-saving materials (ESMs), installations of which benefit from zero-rating until 31 March 2027 and the 5% reduced rate thereafter. For example, groundworks for ground-source and water-source heat pumps will now be included, as will installations of some batteries and also ‘smart diverters’ which direct surplus power from solar panels etc. to appliances (e.g. an immersion heater) within the qualifying building rather than exporting the surplus to the national grid.
Installations of ESMs in buildings used solely for relevant charitable purposes will also be brought back within scope of zero-rating/the reduced rate (having previously been removed by Finance Act 2013). The changes will apply from 1 February 2024.
The Value Added Tax (Installation of Energy-Saving Materials) Order, SI 2024/24, expands the list of energy-saving materials (ESMs), installations of which benefit from zero-rating until 31 March 2027 and the 5% reduced rate thereafter. For example, groundworks for ground-source and water-source heat pumps will now be included, as will installations of some batteries and also ‘smart diverters’ which direct surplus power from solar panels etc. to appliances (e.g. an immersion heater) within the qualifying building rather than exporting the surplus to the national grid.
Installations of ESMs in buildings used solely for relevant charitable purposes will also be brought back within scope of zero-rating/the reduced rate (having previously been removed by Finance Act 2013). The changes will apply from 1 February 2024.
