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.