VENSAV2020 | History of the reduced rate: extension of relief in 2000

Installation of energy-saving materials in all homes

As domestic consumers paid 5% VAT on domestic fuel and power, there was therefore a disincentive to improve energy efficiency if VAT on energy-saving products remained at the then standard rate of 17.5%. Consequently, with effect from 1 April 2000, the scope of the reduced rate was extended to the supply and installation in all residential accommodation or charity buildings whether grant-funded or not. For charity buildings this was the case until 1 August 2013 when the relief was withdrawn. This relief was subsequently reinstated on the 1 February 2024 (See VENSAV3101).

The energy-saving materials included in the relief were:

• insulation for walls, floors, ceilings, roofs, lofts, water tanks, pipes and other plumbing fittings

• draught stripping for windows and doors

• central heating system controls

• hot water system controls, and

• solar panels