The chancellor announced the introduction of a time-limited zero rate of VAT for the installation of some energy saving materials (ESMs). This reverses a Court of Justice of the EU ruling in 2019 which narrowed the scope of the previous relief for installations in residential accommodation in Great Britain.
The zero rate will be available for five years beginning 1 April 2022 and will revert to the 5% reduced rate of VAT from 1 April 2027. The measure permanently removes the social policy conditions and the 60% test which businesses were required to consider determining the VAT liability of ESM installations before these changes and brings wind and water turbines back into scope of the relief.
In Northern Ireland the list of qualifying goods and rate of VAT due on installations will remain unchanged. The Northern Ireland Executive will receive a Barnett share of the value...
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