The Value Added Tax (Installation of Energy-Saving Materials) Order, SI 2023/376, provides relief from VAT for installations of energy-saving materials (ESMs) in residential properties in Northern Ireland from 1 May 2023. This is an extension of the existing temporary relief that was introduced for the rest of the UK from 1 April 2022, meaning that zero-rating will now apply across the whole of the UK until 31 March 2027. From 1 April 2027 the installation of ESMs will revert back to the 5% reduced rate, unless the government legislates further.
Alongside the principal change, the order also brings wind and water turbines within the scope of zero-rating for ESMs and removes the social policy conditions and 60% test that applied under the previous policy.
HMRC is also consulting (until 31 May 2023) on expanding the list of qualifying materials, and on potentially including installations of ESMs in buildings used solely for a relevant charitable purpose.
The Value Added Tax (Installation of Energy-Saving Materials) Order, SI 2023/376, provides relief from VAT for installations of energy-saving materials (ESMs) in residential properties in Northern Ireland from 1 May 2023. This is an extension of the existing temporary relief that was introduced for the rest of the UK from 1 April 2022, meaning that zero-rating will now apply across the whole of the UK until 31 March 2027. From 1 April 2027 the installation of ESMs will revert back to the 5% reduced rate, unless the government legislates further.
Alongside the principal change, the order also brings wind and water turbines within the scope of zero-rating for ESMs and removes the social policy conditions and 60% test that applied under the previous policy.
HMRC is also consulting (until 31 May 2023) on expanding the list of qualifying materials, and on potentially including installations of ESMs in buildings used solely for a relevant charitable purpose.
