Value Added Tax Act 1994

Group 2 — Installation of energy-saving materialsU.K.

[F11U.K.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.

Textual Amendments

F1Sch. 7A Pt. 2 Group 2 Items 1-3 substituted for Items 1, 2 (1.10.2019) by The Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019 (S.I. 2019/958), arts. 1(1), 3 (with art. 1(2))

2.U.K.The supply of services of installing energy-saving materials in residential accommodation, including the energy-saving materials installed, where—

(a)the supply is made to a qualifying person and the residential accommodation is the qualifying person’s sole or main residence,

(b)the supply is made to a relevant housing association, or

(c)the residential accommodation is a building, or part of a building, used solely for a relevant residential purpose.

Textual Amendments

F1Sch. 7A Pt. 2 Group 2 Items 1-3 substituted for Items 1, 2 (1.10.2019) by The Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019 (S.I. 2019/958), arts. 1(1), 3 (with art. 1(2))

3.U.K.The supply, in a case not falling within item 2, of services of installing energy-saving materials in residential accommodation, including the energy-saving materials installed (but see Note A1).]

Textual Amendments

F1Sch. 7A Pt. 2 Group 2 Items 1-3 substituted for Items 1, 2 (1.10.2019) by The Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019 (S.I. 2019/958), arts. 1(1), 3 (with art. 1(2))

NOTES:

Restriction on item 3U.K.

[F2A1.(1)Item 3 does 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.

(2)In this Note, the reference to cost is to cost net of VAT.]

Textual Amendments

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

1For 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;

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

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

[F4(h)ground source heat pumps;]

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

(j)micro combined heat and power units;]

[F6(k)boilers designed to be fuelled solely by wood, straw or similar vegetal matter.]

Textual Amendments

F3Sch. 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))

F4Sch. 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

F5Sch. 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

F6Sch. 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

Meaning of “residential accommodation”U.K.

2(1)For the purposes of this Group “residential accommodation” means—

(a)a building, or part of a building, that consists of a dwelling or a number of dwellings;

(b)a building, or part of a building, used for a relevant residential purpose;

(c)a caravan used as a place of permanent habitation; or

(d)a houseboat.

(2)For the purposes of this Group “use for a relevant residential purpose” has the same meaning as it has for the purposes of Group 1 (see paragraph 7(1) of the Notes to that Group).

(3)In sub-paragraph (1)(d) “houseboat” has the meaning given by paragraph 7(3) of the Notes to Group 1.

Meaning of “use for a relevant charitable purpose”U.K.

F73. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F7Sch. 7A Pt. 2 Group 2 Note 3 omitted (with effect in accordance with s. 193(4) of the amending Act) by virtue of Finance Act 2013 (c. 29), s. 193(3)

Meaning of “qualifying person”U.K.

[F84.For the purposes of this Group “qualifying person” has the same meaning as it has for the purposes of Group 3 (see paragraph 6 of the Notes to that Group).

Textual Amendments

Meaning of “relevant housing association”U.K.

5.For the purposes of this Group “relevant housing association” has the meaning given by Note (21) of Group 5 of Schedule 8 (zero-rating: construction of buildings etc.).]

Textual Amendments