Reduced rate of VAT on energy-saving materials

The taxpayer sold roof insulation systems for conservatories. Its product was described as a solution that was a ‘solid roof insulation system which replaces existing translucent panes or panels of a domestic conservatory … while retaining the existing aluminium profiles ties and other structural components to the roof’. The First-tier Tribunal decided this was a single supply of insulation that qualified for the reduced rate of VAT under VATA 1994 Sch 7A group 2. HMRC appealed.

The Upper Tribunal said the First-tier Tribunal had erred in its findings of fact. It should have taken account of all the elements of the supply rather than the insulation only. On the facts the supply was all the elements in a roof – the old roof covering was replaced along with a new plasterboard ceiling soffits and rainwater goods. This was more than insulation.

The judge concluded that...