VAT on Energy-Saving Materials – Tip

Take advantage of this temporary vat rate change.

The supply and installation of energy-saving materials are now zero rated until 31 March 2027.  

These rules do not apply to Northern Ireland.

The following items are now zero rated:

  • Controls for central heating
  • draught stripping
  • insulation
  • solar panels
  • ground and air source heat pumps
  • micro combined heat/power units 
  • wood-fuelled boilers
  • wind and water turbines.

Supply of materials only will remain standard rated.

Installation of energy-saving materials with ancillary supplies can all be zero rated. . Ancillary supplies are those that are required to perform the installation or better means of enjoying the principal supply, such as enlarging the loft hatch/access in order to lay loft insulation or installing pipework and radiators.

Installing a gas boiler central heating system is not an energy-saving material, nor is building a house extension and insulating it (the dominant supply is of an extension, not of an energy-saving material).



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