VENSAV2082 | Extension of the relief in 2024

At Autumn statement 2023, following a Call for Evidence, the government announced a further expansion of the relief. These changes qualify for the temporary zero rate until 31 March 2027 after which they revert to the reduced rate.

With effect from 1 February 2024 the relief was expanded to include:

• The installation of qualifying energy-saving materials in buildings used 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 were implemented by amendment to Group 23 of Schedule 8 and Group 2 of Schedule 7A to the VATA 1994.