Updates: VAT Energy-Saving Materials and Grant-Funded Heating Supplies

Change of title from the previous one which was "determining whether the customer is a qualifying person, relevant housing association or the building is used solely for a relevant residential purpose"

Energy-saving materials: meaning of the “open market value of the supply of the materials” and the “cost of the total supply”

Last 3 paras now moved to the first example provided in VENSAV3150

Energy-saving materials: examples of how the 60% test works

An example has been taken from VENSAV3150 and forms example 1 in this manual page. Examples 1, 2 1n 3 in former version of this manual page now become 2, 3 and 4 respectively.

Energy-saving materials: single supplies of energy-saving materials

Changes to the body of the text to reflect the temporary rules applicable from 1 April 2022

Energy-saving materials: single zero-rated and standard-rated supplies

minor textual amendments to clarify VAT treatment of thermally insulated conservatory roofs

Energy-saving materials: separate supplies

Text amended to reflect legislative changes applicable from 1 April 2022

Energy-saving materials: Interaction between energy-saving materials supplied with other works and the 60% test (Applicable to supplies made in GB between 1 October 2019 and 31 March 2022 and in NI for supplies made from 1 October 2019).

Title expanded to include dates of applicability to supplies made in GB and NI

Energy-saving materials: replacement conservatory roofs

Text updated to reflect onging litigation in Greenspace

Energy-saving materials: apportionment of energy-saving materials serving buildings used for both qualifying and non-qualifying purposes

removed this wording "with effect from 1 October 2019, wind turbines no longer qualify as energy-saving materials". The position relating to wind and water turbines is explained in VENSAV3070.

Energy-saving materials: More than one job at the same premises

Textual amendments in example 1 to reflect the dates of legislative changes.

9 December 2022 published amendments

Energy-saving materials: insulation

Amended to take account of Revenue Customs Brief 9/18

8 December 2022 published amendments

History of the reduced rate: Change to the Reduced Rate Schedule in 2001

Minor textual amendment

History of the reduced rate: Further extension of relief in 2002

Minor textual amendment

History of the reduced rate: Scope of the relief restricted in 2019 (overview)

minor textual amendment

5 December 2022 published amendments

History of the reduced rate: Change to the Reduced Rate Schedule in 2001

minor textual amendment

History of the reduced rate: Further extension of relief in 2002

Minor textual amendment

2 December 2022 published amendments

Law and regulations

This page has been reviewed by the VAT Reliefs Team to reflect the legislative changes introduced by the Value Added Tax (Installation of Energy Saving Materials) Order 2022. Other minor changes to the text have been made

History of the reduced rate: Introduction of the relief in 1998

Miner textual revisions

History of the reduced rate: Extension of relief in 2000

Updated to reflect and include legislative changes introduced with effect from1 April 2022

History of the reduced rate: Grant-funded installation of heating systems measures and qualifying security goods

minor textual changes and reference and link to VENSAV4500 provided