Reduce the rate of Value Added Tax levied on the supply of energy-saving materials
and the cost of their installation; and for connected purposes.
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—
1 Reduced rate of VAT on energy-saving materials
(1) Value Added Tax shall be levied at the reduced rate on the supply of the
(a) cavity wall insulation;
(b) loft insulation;
(c) under-floor insulation;
(d) insulation for hot-water tanks;
(e) insulation for pipes and other plumbing fittings;
(f) draught proofing;
(g) domestic heating control systems;
(h) external and internal wall cladding where provided for the purpose of
(i) low-emissivity glazing;
(j) domestic combined heat and power systems;
(k) domestic heat pumps;
(l) domestic solar thermal systems; and
(m) any services relating to the installation of any items listed in paragraphs
(a) to (l).
(2) The Secretary of State may by order made by statutory instrument add to the
list specified in subsection (1) further energy-saving materials and services
relating to their installation; and a statutory instrument under this subsection
shall be subject to annulment by a resolution of the House of Commons.
(3) For the purposes of this Act, “the reduced rate” shall be the rate applied by
section 2(1A) of the Value Added Tax Act 1994 (c. 23) (rate of VAT).