HMRC has published a policy paper entitled “VAT changes to the reduced rate for energy-saving materials”, together with a summary of responses to its consultation document published in April 2019.
The consultation and policy paper relate to changes to the scope of the reduced VAT rate of 5% for energy-saving materials in residential accommodation, to ensure consistency with EU law. These changes were effected by the Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019 (SI 2019/958) (the Order), made on 20 May 2019 and coming into force on 1 October 2019.
The government has confirmed that the outcome of the consultation has not resulted in any changes to the Order. Instead, the government intends to use the comments received in preparing guidance.
The policy paper can be viewed here.