VENSAV3270 - replacement roofs

The replacement of a roof, even if it is thermally efficient, does not fall within the scope of the relief and is normally a standard rated supply. The question whether the fitting of insulated roof panels to pre-existing conservatory roofs qualified as “insulation for roofs” in Note 1 to Group 2 of Schedule 7A (and therefore qualified for the relief) was considered by the Court of Appeal in Greenspace (UK) Ltd v HMRC [2023] EWCA Civ 106.

Par. 37 of the decision set out the legal test and stated: “In my judgment, the question posed by Note 1(a) is whether supplies are ‘insulation for roofs’ using those words in their ordinary sense, applied strictly but not restrictively. If the supply in question is of something more than or different from insulation for roofs, then it will fall outside Note 1(a) and the reduced rate will not apply”.

Par. 45 of the decision went on to conclude that: “…The inference I draw, which I consider to be unavoidable, is that the Appellant's panels do provide insulation for the conservatory on which they are installed but they also protect the conservatory from the outside elements. They may have other characteristics as well, but these two characteristics are fundamental aspects of the product mean that the supplies fall outside Note 1(a).”