Energy: Conservation

(asked on 19th November 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, for what reason VAT is payable on domestic cavity wall insulation and other energy efficiency measures; and if he will make a statement.


Answered by
Lucy Frazer Portrait
Lucy Frazer
Secretary of State for Culture, Media and Sport
This question was answered on 29th November 2021

Under UK VAT rules, most goods and services are subject to the standard rate of VAT of 20 per cent. While there are exceptions to the standard rate, these have always been limited by both legal and fiscal considerations.

One exception is the 5 per cent reduced rate that applies to the installation of certain energy-saving materials, including insulation for walls, in residential accommodation. Further information can be found in VAT Notice 708/6 Energy-saving materials and heating equipment, which is available at: www.gov.uk.

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