Installation of energy-saving materials before 31st March 20273
1
In Schedule 8 to the Value Added Tax Act 1994 (zero-rating), in Part 2, Group 23 (installation of energy-saving materials before 31st March 2027)5 is amended as follows.
2
In items 1 and 2, for “residential accommodation.” substitute
—
a
residential accommodation, or
b
a building intended for use solely for a relevant charitable purpose.
3
In paragraph 1 of the notes (meaning of “energy-saving materials”)—
a
the existing text becomes sub-paragraph (1);
b
after sub-paragraph (1)(i) insert—
ia
water source heat pumps;
c
after sub-paragraph (1)(k) insert—
l
electrical storage batteries within sub-paragraph (2);
m
smart diverters.
d
after sub-paragraph (1) insert—
2
An electrical storage battery is within this sub-paragraph if it is intended for use solely for storing energy converted from electricity that was—
a
supplied to the residential accommodation or building in question, or
b
generated by a microgeneration system.
3
In sub-paragraph (2), “supplied” is to be construed in accordance with Part 1 of the Electricity Act 1989 (see section 64(1) of that Act).
4
In sub-paragraph (1)(m), “smart diverter” means a device capable of automatically diverting electricity generated by a microgeneration system to one or more appliances, in particular circumstances.
4
After paragraph 3 of the notes, insert—
Installation of heat pumps
4
For the purposes of item 1, “installing energy-saving materials” includes carrying out groundworks, or dredging a body of water, in order to install pipework or other equipment necessary for the operation of a ground source heat pump or a water source heat pump.
Meaning of “use for a relevant charitable purpose”
5
For the purposes of this Group a building is used “for a relevant charitable purpose” if it is used by a charity—
a
otherwise than in the course or furtherance of a business, or
b
as a village hall or similarly in providing social or recreational facilities for a local community.