VENSAV2083 - VAT rates applying to qualifying energy-saving materials with commencement dates (table)

The table below sets out the VAT rates applying to qualifying energy-saving materials and the dates they took effect.

The term “zero rated” refers to the temporary zero rate applying until 31 March 2027 (after which the reduced rate applies).

References to Great Britain and the United Kingdom. The term ‘GB’ encompasses England, Scotland and Wales while the term ‘UK’ also includes Northern Ireland (NI).

Note that installations of energy-saving materials qualified for relief when installed in both residential accommodation and buildings intended for use solely for a relevant charitable purpose (“charitable buildings”) until 31 July 2013. From 1 August 2013 the relief was withdrawn from charitable buildings and only installations in residential accommodation qualified for the relief. From 1 February 2024 the relief for charitable buildings was reinstated and from this date installations of energy-saving materials qualify for the relief when installed in both residential accommodation and charitable buildings.

Energy Saving material  

      Applicable VAT rates and dates 

Air source heat pumps  

 
  • From 7 April 2005: reduced rated  

 

  • 1 October 2019: reduced rated subject to eligibility conditions (social policy conditions and 60% test) 

     
  • 1 April 2022 to 31 March 2027: zero rated GB (England, Scotland and Wales only) (eligibility conditions removed permanently GB) 

     
  • 1 May 2023 to 31 March 2027: zero rated UK wide (extended to Northern Ireland) (eligibility conditions removed permanently NI) 

     
  • From 1 April 2027: reduced rated  

 

Controls for central heating and hot water systems  
  • From 1 April 2000:  reduced rated  

 

  • 1 October 2019: reduced rated subject to eligibility conditions (social policy conditions and 60% test) 

     
  • 1 April 2022 to 31 March 2027: zero rated GB (England, Scotland and Wales only) (eligibility conditions removed permanently GB)  

     
  • 1 May 2023 to 31 March 2027: zero rated UK wide (now applicable to Northern Ireland) (eligibility conditions removed permanently NI) 

     
  • From 1 April 2027: reduced rated 

 

Draught stripping  
  • From 1 April 2000:  reduced rated  

 

  • 1 October 2019: reduced rated subject to eligibility conditions (social policy conditions and 60% test) 

 

  • 1 April 2022 to 31 March 2027: zero rated GB (England, Scotland and Wales only) (eligibility conditions removed permanently GB) 

 

  • 1 May 2023 to 31 March 2027: zero rated UK wide (now applicable to Northern Ireland) (eligibility conditions removed permanently NI) 

     
  • From 1 April 2027: reduced rated 

 

Electrical storage batteries 

 
  • From 1 February 2024 to 31 March 2027: zero rated UK wide 

 

  • From 1 April 2027: reduced rated  

 

Ground source heat pumps 
  • From 1 June 2004: reduced rated 

 

  • 1 October 2019: reduced rated subject to eligibility conditions (social policy conditions and 60% test)  

     
  • 1 April 2022 to 31 March 2027: zero rated GB (England, Scotland and Wales only) (eligibility conditions removed permanently GB) 

     
  • 1 May 2023 to 31 March 2027: zero rated UK wide (now applicable to Northern Ireland) (eligibility conditions removed permanently NI) 

     
  • From 1 April 2027: reduced rated 

     

 

Insulation 
  • From 1 April 2000:  reduced rated  

 

  • 1 October 2019: reduced rated subject to eligibility conditions (social policy conditions and 60% test) 

 

  • 1 April 2022 to 31 March 2027: zero rated GB (England, Scotland and Wales only) (eligibility conditions removed permanently GB) 

 

  • 1 May 2023 to 31 March 2027: zero rated UK wide (now applicable to Northern Ireland) (eligibility conditions removed permanently NI) 

     
  • From 1 April 2027: reduced rated 

 

Micro combined heat and power units  
  • From 1 June 2005: reduced rated  

 

  • 1 October 2019: reduced rated subject to eligibility conditions (social policy conditions and 60% test) 

     
  • 1 April 2022 to 31 March 2027: zero rated GB (England, Scotland and Wales only) (eligibility conditions removed permanently GB) 

     
  • 1 May 2023 to 31 March 2027: zero rated UK wide (now applicable to Northern Ireland) (eligibility conditions removed permanently NI) 

     
  • From 1 April 2027: Reduced rated  

 

Smart Diverters  
  • From 1 February 2024 to 31 March 2027: zero rated UK wide 

 

  • From 1 April 2027: reduced rated  

 

Solar panels  
  • From 1 April 2000:  reduced rated  

 

  • 1 October 2019: reduced rated subject to eligibility conditions (social policy conditions and 60% test) 

 

  • 1 April 2022 to 31 March 2027: zero rated GB (England, Scotland and Wales only) (eligibility conditions removed permanently GB) 

 

  • 1 May 2023 to 31 March 2027: zero rated UK wide (now applicable to Northern Ireland) (eligibility conditions removed permanently NI) 

     
  • From 1 April 2027: reduced rated 

 

Water source heat pumps 
  • From 1 February 2024 until 31 March 2027: zero rated UK wide 

 

  •  From 1 April 2027: reduced rated  

     

 

Water turbines 
  •  From 28 July 2000: reduced rated  

 

  • 1 October 2019: standard rated (reduced rating withdrawn)  

 

  • 1 April 2022 to 31 March 2027: zero rated GB (England, Scotland and Wales only)  

 

  • 1 May 2023 to 31 March 2027: zero rated UK wide (now applicable to Northern Ireland)    

     
  • From 1 April 2027: Reduced rated 

 

Wind turbines  
  •  From 28 July 2000: reduced rated  

 

  • 1 October 2019: standard rated (reduced rating withdrawn)  

 

  • 1 April 2022 to 31 March 2027: zero rated GB (England, Scotland and Wales only)  

 

  • 1 May 2023: zero rated UK wide (now applicable to Northern Ireland)  

     
  • From 1 April 2027: Reduced rated 

 

 

Wood-fuelled boilers  
  • From 1 January 2006:  reduced rated  

 

  • 1 October 2019: reduced rated subject to eligibility conditions (social policy conditions and 60% test) 

 

  • 1 April 2022 to 31 March 2027: zero rated GB (England, Scotland and Wales only) (eligibility conditions removed permanently GB) 

 

  • 1 May 2023 to 31 March 2027: zero rated UK wide (now applicable to Northern Ireland) (eligibility conditions removed permanently NI) 

     
  • From 1 April 2027: reduced rated