Schedule 35 | Value added tax: charge at reduced rate ^F1

(1)Schedule A1 to the Value Added Tax Act 1994 (charge at reduced rate) has effect with the following amendments.

(1)Paragraph 1(1) (supplies benefiting from the reduced rate) is amended as follows.

(2)After paragraph (a) insert—

(aa)supplies of services of installing List A energy-saving materials in residential accommodation or in a building intended for use solely for a relevant charitable purpose;

(ab)supplies of List A energy-saving materials by a person who installs those materials in residential accommodation or a building intended for use solely for a relevant charitable purpose;

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(3)In each of paragraphs (b) and (c), before “energy-saving materials" insert “ List B ”.

(4)After paragraph (c) insert—

(d)supplies to a qualifying person of services of connecting, or reconnecting, a mains gas supply to the qualifying person’s sole or main residence;

(e)supplies of goods made to a qualifying person by a person connecting, or reconnecting, a mains gas supply to the qualifying person’s sole or main residence, being goods whose installation is necessary for the connection, or reconnection, of the mains gas supply;

(f)supplies to a qualifying person of services of installing, maintaining or repairing a central heating system in the qualifying person’s sole or main residence;

(g)supplies of goods made to a qualifying person by a person installing, maintaining or repairing a central heating system in the qualifying person’s sole or main residence, being goods whose installation is necessary for the installation, maintenance or repair of the central heating system;

(h)supplies consisting in the leasing of goods that form the whole or part of a central heating system installed in the sole or main residence of a qualifying person;

(i)supplies of goods that form the whole or part of a central heating system installed in a qualifying person’s sole or main residence and that, immediately before being supplied, were goods leased under arrangements such that the consideration for the supplies consisting in the leasing of the goods was, in whole or in part, funded by a grant made under a relevant scheme;

(j)supplies to a qualifying person of services of installing qualifying security goods in the qualifying person’s sole or main residence; and

(k)supplies of qualifying security goods made to a qualifying person by a person who installs those goods in the qualifying person’s sole or main residence.

(3)For paragraph 1(1A) (supplies benefit from reduced rate only if funded by grants) substitute—

(1A)A supply to which any of paragraphs (b) to (k) of sub-paragraph (1) above applies is a supply falling within this paragraph only to the extent that the consideration for it—

(a)is, or is to be, funded by a grant made under a relevant scheme; or

(b)in the case of a supply to which paragraph (i) of that sub-paragraph applies—

(i)is, or is to be, funded by such a grant, or

(ii)is a payment becoming due only by reason of the termination (whether by the passage of time or otherwise) of the leasing of the goods in question.

(4)In paragraph 1(1B) (interpretation of sub-paragraph (1A))—

(a)for “sub-paragraph (1)(b) or (c)" substitute “ any of paragraphs (b) to (k) of sub-paragraph (1) ”, and

(b)for “neither of those sub-paragraphs" substitute “ none of those paragraphs ”.

(5)In paragraph 5(3)(c), for “disability working allowance" substitute “ disabled person’s tax credit ”.

(6)In paragraph 5(3)(d), for “family credit" substitute “ working families’ tax credit ”.

(7)In paragraph 5 (interpretation), after sub-paragraph (3) insert—

(3A)For the purposes of paragraph 1(1)(aa) and (ab) above “residential accommodation” means—

(a)a building, or part of a building, that consists of a dwelling or a number of dwellings;

(b)a building, or part of a building, used for a relevant residential purpose;

(c)a caravan used as a place of permanent habitation; or

(d)a houseboat.

(3B)For the purposes of paragraph 1(1)(aa) and (ab) above “use for a relevant charitable purpose” means use by a charity in either or both of the following ways, namely—

(a)otherwise than in the course or furtherance of a business;

(b)as a village hall or similarly in providing social or recreational facilities for a local community.

(1)Paragraph 5(4) (meaning of “energy-saving materials”) is amended as follows.

(2)For “For the purposes of paragraph 1(1)(b) and (c) above “energy-saving materials" means" substitute “ For the purposes of paragraph 1(1)(aa) and (ab) above “List A energy-saving materials" means ”.

(3)In paragraph (c), after “central heating system controls" insert “ (including thermostatic radiator valves) ”.

(4)After paragraph (d) insert—

(e)solar panels;

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(5)After paragraph (e) (which is inserted by sub-paragraph (4) above) insert—

(f)wind turbines;

(g)water turbines.

(9)In paragraph 5, after sub-paragraph (4) insert—

(4A)For the purposes of paragraph 1(1)(b) and (c) above “List B energy-saving materials” means any of the following—

(a)gas-fired room heaters that are fitted with thermostatic controls;

(b)electric storage heaters;

(c)closed solid fuel fire cassettes;

(d)electric dual immersion water heaters with foam-insulated hot water tanks;

(e)gas-fired boilers;

(f)oil-fired boilers;

(g)radiators.

(4B)For the purposes of paragraph 1(1)(j) and (k) above, “qualifying security goods” means any of the following—

(a)locks or bolts for windows;

(b)locks, bolts or security chains for doors;

(c)spy holes;

(d)smoke alarms.

(10)In paragraph 5(5) (meaning of “relevant scheme”), for “paragraph 1(1A) and (1B)" substitute “ paragraph 1 ”.