Documents to download

A zero-rate of VAT on the installation of energy-saving materials (ESMs), including solar panels, in residential accommodation, was introduced on 1 April 2022. At the time, it only applied to England, Scotland, and Wales.

Following a new agreement between the UK and the EU, the zero-rating was also implemented in Northern Ireland on 1 May 2023.

The relief is set to last until 31 March 2027. On 1 April 2027, the VAT rate on such supplies will return to 5% (the reduced rate).

Following a 2023 call for evidence, the Government has extended the eligibility for the relief to include other technologies, as well as extending the eligibility for buildings used for a relevant charitable purpose.

UK VAT law is consolidated in the Value Added Tax Act 1994. These changes were implemented through statutory instruments: The Value Added Tax (Installation of Energy-Saving Materials) Order 2022, The Value Added Tax (Installation of Energy-Saving Materials) Order 2023, and The Value Added Tax (Installation of Energy-Saving Materials) Order 2024 amended the 1994 Act.

Documents to download

Related posts

  • Council tax: FAQs

    This Briefing Paper provides a general introduction to council tax, a tax levied on domestic properties in England, Scotland and Wales. It explains what council tax is, who has to pay it, how council tax is calculated and set, and whether any exemptions or discounts may be available.

    Council tax: FAQs