VENSAV3037 - Energy-saving materials: further expansion of the relief from 1 February 2024
From 1 February 2024 the relief was expanded to include:
- The installation of qualifying energy-saving materials in buildings intended for use solely for a relevant charitable purpose (such as village halls or similar recreational facilities for a local community);
-
The following energy- saving
materials ;
(i) water source heat pumps
(ii) electrical battery storage; and
(iii) smart diverters.
-
Supplies of groundworks, or dredging a
body of water, in order to install pipework and other equipment necessary for
the operation of a ground or water source heat pump installed in (or in the
curtilage of) residential accommodation or buildings intended for use solely
for a relevant charitable purpose.
These changes qualify for the temporary zero rate until 31 March 2027 after which they will be reduced rated.
The following table provides a simplified overview of the rules for ESMs and preparatory works for the installation of ground and water source heat pumps (see VENSAV3082), applying from 1 April 2022 until 31 March 2027 in Great Britain and from 1 May 2023 to 31 March 2027 in Northern Ireland.
Great Britain |
Northern Ireland |
UK wide (GB and NI) |
|
1. Installation of ESMs (excluding the materials) in residential accommodation 2. Installation of ESMs (excluding materials) in buildings intended to be used solely for a relevant charitable purpose |
Zero rated from 1 April 2022 – 31 March 2027 Zero rated from 1 February 2024 to 31 March 2027 |
Zero rated from 1 May 2023 – 31 March 2027 Zero rated from 1 February 2024 to 31 March 2027 |
Reduced rated from 1 April 2027 Reduced rated from 1 April 2027 |
3. Installation of ESMs (including the materials) in residential accommodation 4. Installation of ESMs (including the materials) in buildings intended to be used solely for a relevant charitable purpose |
Zero rated from 1 April 2022 – 31 March 2027 Zero rated from 1 February 2024 to 31 March 2027 |
Zero rated from 1 May 2023 – 31 March 2027 Zero rated from 1 February 2024 to 31 March 2027 |
Reduced rated from 1 April 2027 Reduced rated from 1 April 2027 |
5. Preparatory groundworks necessary for the installation of ground and water source heat pumps |
From 1 February 2024 |
From 1 February 2024 |
Reduced rated |