Value Added Tax Act 1994

Meaning of “energy-saving materials” U.K.

1 [F1 (1)] For the purposes of this Group “energy-saving materials” means any of the following—

(a) insulation for walls, floors, ceilings, roofs or lofts or for water tanks, pipes or other plumbing fittings;

(b) draught stripping for windows and doors;

(c) central heating system controls (including thermostatic radiator valves);

(d) hot water system controls;

(e) solar panels;

[F2 (f) wind turbines;

(g) water turbines;]

F3 (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3 (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F4 (h) ground source heat pumps;]

[F5 (i) micro combined heat and power units. air source heat pumps;

[F6 (ia) water source heat pumps;]

(j) micro combined heat and power units;]

[F7 (k) boilers designed to be fuelled solely by wood, straw or similar vegetal matter.]

[F8 (l) electrical storage batteries within sub-paragraph (2);

(m) smart diverters.]

[F9 (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.

(5) In sub-paragraphs (2) and (4), “microgeneration system” means equipment—

(a) that generates electricity, and

(b) that is itself an energy-saving material for the purposes of this Group.]

Textual Amendments

F1 Sch. 7A Pt. 2 Group 2 Notes para. 1 renumbered as Sch. 7A Pt. 2 Group 2 Notes para. 1(1) (1.2.2024) by The Value Added Tax (Installation of Energy-Saving Materials) Order 2024 (S.I. 2024/24), arts. 1(2), 2(3)(a)

F2 Sch. 7A Pt. 2 Group 2 Note 1(f)(g) inserted (1.5.2023) by The Value Added Tax (Installation of Energy-Saving Materials) Order 2023 (S.I. 2023/376), arts. 1, 4(3)(d)(ii)

F3 Sch. 7A Pt. 2 Group 2 Note 1(f)(g) omitted (1.10.2019) by virtue of The Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019 (S.I. 2019/958), arts. 1(1), 5 (with art. 1(2))

F4 Sch. 7A Pt. 2 Group 2 Note 1(h) inserted (1.6.2004) by The Value Added Tax (Reduced Rate) Order 2004 (S.I. 2004/777), arts. 1, 3

F5 Sch. 7A Pt. 2 Group 2 Note 1(i)(j) inserted (7.4.2005) by The Value Added Tax (Reduced Rate) Order 2005 (S.I. 2005/726, arts. 1, 3

F6 Sch. 7A Pt. 2 Group 2 Notes para. 1(1)(ia) inserted (1.2.2024) by The Value Added Tax (Installation of Energy-Saving Materials) Order 2024 (S.I. 2024/24), arts. 1(2), 2(3)(b)

F7 Sch. 7A Pt. 2 Group 2 Note 1(k) inserted (1.1.2006) by The Value Added Tax (Reduced Rate) (No. 2) Order 2005 (S.I. 2005/3329), arts. 1, 3

F8 Sch. 7A Pt. 2 Group 2 Notes para. 1(1)(l)(m) inserted (1.2.2024) by The Value Added Tax (Installation of Energy-Saving Materials) Order 2024 (S.I. 2024/24), arts. 1(2), 2(3)(c)

F9 Sch. 7A Pt. 2 Group 2 Notes para. 1(2)-(5) inserted (1.2.2024) by The Value Added Tax (Installation of Energy-Saving Materials) Order 2024 (S.I. 2024/24), arts. 1(2), 2(3)(d)