VENSAV3037 - Energy-saving materials: further expansion of the relief from 1 February 2024

From 1 February 2024 the relief was expanded to include:

  • The installation of qualifying energy-saving materials in buildings intended for use solely for a relevant charitable purpose (such as village halls or similar recreational facilities for a local community);
  • The following energy- saving materials ;

    (i) water source heat pumps

    (ii) electrical battery storage; and

    (iii) smart diverters.

  • Supplies of groundworks, or dredging a body of water, in order to install pipework and other equipment necessary for the operation of a ground or water source heat pump installed in (or in the curtilage of) residential accommodation or buildings intended for use solely for a relevant charitable purpose.

These changes qualify for the temporary zero rate until 31 March 2027 after which they will be reduced rated.

The following table provides a simplified overview of the rules for ESMs and preparatory works for the installation of ground and water source heat pumps (see VENSAV3082), applying from 1 April 2022 until 31 March 2027 in Great Britain and from 1 May 2023 to 31 March 2027 in Northern Ireland.

Great Britain

Northern Ireland

UK wide (GB and NI)

1.    Installation of ESMs (excluding the materials) in residential accommodation

2.    Installation of ESMs (excluding materials) in buildings intended to be used solely for a relevant charitable purpose

Zero rated from 1 April 2022 – 31 March 2027


Zero rated from 1 February 2024 to 31 March 2027

Zero rated from 1 May 2023 – 31 March 2027


Zero rated from 1 February 2024 to 31 March 2027

Reduced rated from 1 April 2027



Reduced rated from 1 April 2027

3.    Installation of ESMs (including the materials) in residential accommodation

4.    Installation of ESMs (including the materials) in buildings intended to be used solely for a relevant charitable purpose

Zero rated from 1 April 2022 – 31 March 2027


Zero rated from 1 February 2024 to 31 March 2027

Zero rated from 1 May 2023 – 31 March 2027


Zero rated from 1 February 2024 to 31 March 2027

Reduced rated from 1 April 2027



Reduced rated from 1 April 2027

5.    Preparatory groundworks necessary for the installation of ground and water source heat pumps

From 1 February 2024

From 1 February 2024

Reduced rated