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VENSAV2080 | History of the reduced rate: introduction of the time-limited zero rate of VAT and a reversal of the 2019 restrictions in Great Britain

From HM Revenue & Customs · VAT Energy-Saving Materials and Grant-Funded Heating Supplies

With effect from 1 April 2022:

  • The 2019 restrictions in Great Britain were permanently reversed;

  • A temporary zero rate for the installation of energy-saving materials in residential accommodation in Great Britain was introduced, for the period of 1 April 2022 to 31 March 2027 (after which the rate will revert back to the reduced rate); and

  • Wind and water turbines were reintroduced as qualifying energy-saving materials in Great Britain only.

    Note: These changes were applicable to Great Britain only and did not apply to Northern Ireland. They were introduced by Group 23 of Schedule 8 to VATA 1994 (as inserted by the Value Added Tax (Installation of Energy Saving Materials) Order 2022.