Andrew Needham looks at some of the changes relating to the VAT liability of energy-saving materials.
The history of the VAT liability of the supply of energy-saving materials (ESMs) installed in residential accommodation (NB ‘residential accommodation’ means dwellings, including caravans permanently lived in and houseboats, together with buildings used for a relevant residential purpose) has been fairly convoluted, not least following the intervention of the ECJ.
Too generous
In 2015, the ECJ published its decision in (C161/14) European Commission v United Kingdom and found against the UK and Ireland. The result was that the UK had to change the law and remove the 5% reduced rate of VAT from the installation of most energy-saving materials. Among the items affected are micro-combi boilers, insulation and
