VAT relief changes on certain energy-saving materials for charitable buildings

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The Government has recently removed VAT on the installation of certain energy-saving materials for buildings used solely for a relevant charitable purpose. This means that the next time you are getting a qualifying energy saving building upgrade, the builder/installer will not charge VAT on the price. 

Previously, charities could benefit from the zero rating where the energy saving materials were installed on a building intended for use solely for a relevant charitable purpose. This was withdrawn in 2013 due to EU legislation.The zero-rating relief will be reintroduced from the 1st February 2024, which will allow charities to install energy saving materials, the same as for domestic consumers. A charity qualifies for the zero rating where the property in which the installations take place is used other than in the course or furtherance of business.

Find out more details on the eligibility criteria on the Government webpage.