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Changes to VAT zero rating imminent - Dunhams News Blogs

Changes to VAT zero rating imminent


Posted on: 28-12-2023

Changes to VAT zero rating imminent – Dunhams News Blogs

HMRC has announced an extension to the materials qualifying for the VAT zero rate from 1 February 2024. What’s the full story?

Changes to VAT zero rating imminent - Dunhams News Blogs

The government often uses tax policy to encourage the use of energy efficient/otherwise environmentally friendly technologies. Currently, the purchase of certain energy-saving materials (ESM) is zero rated for VAT until 31 March 2027, at which point it is due to revert to the reduced VAT rate of 5%. Following a consultation, the list of materials qualifying for the zero rate has been extended to include the following from 1 February 2024:

Changes to VAT zero rating imminent

For more help take a look at our VAT Services

The zero rate will also apply to the installation of some groundworks that are required for the installation of heat pumps. These works will be specifically defined in the legislation.

Further information on the outcome of the consultation can be found here.

If you would like any assistance with any of these points.

Please Call Us on 0161 872 8671

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