V4.409 Energy-saving materials

Scope of reduced-rating for energy-saving materials from 1 October 2019

The scope of the reduced rate for energy-saving materials is amended in relation to supplies made on or after 1 October 2019, except for supplies paid for before that date and supplies made pursuant to a contract entered into before that date1.

The reduced rate applies thereafter to2:

  1.  

    •     the supply of services of installing energy-saving materials in residential accommodation, where the energy-saving materials are not supplied by the person supplying the services

  2.  

    •     the supply of services of installing energy-saving materials in residential accommodation, including the energy-saving materials installed, where:

  3.  
    1.  

      –     the supply is made to a qualifying person and the residential accommodation is the qualifying person's sole or main residence

    2.  

      –     the supply is made to a relevant housing association, or

    3.  

      –     the residential accommodation is a building, or part of a building, used solely for a relevant residential purpose

  4.  

    •     the supply, in a case not falling within the bullet above, of services of installing energy-saving materials in residential accommodation, including the energy-saving materials installed (this will not apply to a supply so far as relating to the energy-saving materials installed if the open market value of the supply of the materials exceeds 60% of the cost of the total supply to the person to whom it is made – reference to cost is to cost net of VAT3). Examples of the application of the 60% test may be found in Notice 708/6/21 (February

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