Measure

VAT relief on energy-saving materials

The measure

Heat batteries installed in residential accommodation and charitable buildings will be included in the list of energy-saving materials that qualify for the reduced VAT rate of 5%. (The temporary zero rate that currently applies to energy-saving materials will revert to the reduced rate on 1 April 2027.)

 

Who will be affected?

Installers and purchasers of heat batteries.

 

When will the measure come into effect?

From 1 April 2027.

Our view

The amendment recognises the role of heat batteries as an energy-saving material.