HMRC is consulting on updated draft legislation to amend the scope of the VAT relief for the installation of energy-saving materials (ESMs) in residential accommodation.
The proposed amendments will:
- reduced installations rate of ESMs in residential accommodation for recipients who are 60+ or receiving certain benefits, & for housing associations;
- remove the reduced rate for the installation of wind and water turbines; and
- reduced rate for installations in residential accommodation where material costs of installation does not exceed 60%