Value Added Tax Act 1994

Group 2 — Installation of energy-saving materials [F1 in Northern Ireland] U.K.

Textual Amendments

F1 Words in Sch. 7A Pt. 2 Group 2 heading inserted (1.4.2022) by The Value Added Tax (Installation of Energy-Saving Materials) Order 2022 (S.I. 2022/361), arts. 2, 5(3)(a)

[F2 1 U.K. The supply of services of installing energy-saving materials in residential accommodation [F3 in Northern Ireland], where the energy-saving materials are not supplied by the person supplying the services.

Textual Amendments

F2 Sch. 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))

F3 Words in Sch. 7A Pt. 2 Group 2 Item 1 inserted (1.4.2022) by The Value Added Tax (Installation of Energy-Saving Materials) Order 2022 (S.I. 2022/361), arts. 2, 5(3)(b)

2. U.K. The supply of services of installing energy-saving materials in residential accommodation [F4 in Northern Ireland], 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

F2 Sch. 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))

F4 Words in Sch. 7A Pt. 2 Group 2 Item 2 inserted (1.4.2022) by The Value Added Tax (Installation of Energy-Saving Materials) Order 2022 (S.I. 2022/361), arts. 2, 5(3)(c)

3. U.K. The supply, in a case not falling within item 2, of services of installing energy-saving materials in residential accommodation [F5 in Northern Ireland], including the energy-saving materials installed (but see Note A1).]

Textual Amendments

F2 Sch. 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))

F5 Words in Sch. 7A Pt. 2 Group 2 Item 3 inserted (1.4.2022) by The Value Added Tax (Installation of Energy-Saving Materials) Order 2022 (S.I. 2022/361), arts. 2, 5(3)(d)

NOTES:

Restriction on item 3 U.K.

[F6 A1. (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

F6 Sch. 7A Pt. 2 Group 2 Note A1 inserted (1.10.2019) by The Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019 (S.I. 2019/958), arts. 1(1), 4 (with art. 1(2))

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

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;

F7 (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7 (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F8 (h) ground source heat pumps;]

[F9 (i) micro combined heat and power units. air source heat pumps;

(j) micro combined heat and power units;]

[F10 (k) boilers designed to be fuelled solely by wood, straw or similar vegetal matter.]

Textual Amendments

F7 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))

F8 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

F9 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

F10 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

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.

F11 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F11 Sch. 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.

[F12 4. 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

F12 Sch. 7A Pt. 2 Group 2 Notes 4, 5 inserted (1.10.2019) by The Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019 (S.I. 2019/958), arts. 1(1), 6 (with art. 1(2))

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

F12 Sch. 7A Pt. 2 Group 2 Notes 4, 5 inserted (1.10.2019) by The Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019 (S.I. 2019/958), arts. 1(1), 6 (with art. 1(2))