As announced in the Spring Statement, with effect from 1 April 2022 the installation of energy saving materials and green energy generation equipment in residential property will be zero rated. The zero rating will be available for a period of five years.
The zero rate applies to the installation of these items so that if you buy just the materials these will still be standard rated.
The previous conditions relating to “social need” and to the labour content having to be at least 60% of the cost of the installation will no longer apply.
The zero rate will also apply to the installation of wind and water turbines that have not been covered by the previous reduced rate since 2019.