VAT relief on energy saving materials for village halls
29th November 2023
There was some good news in the Chancellor's recent Autumn-statement for village halls planning energy improvements – The reinstatement of VAT relief on the installation of Energy Saving Materials (ESMs) in buildings used for charitable purposes.
As ACRE evidenced earlier in the year, this will help village halls make improvements to their building, save on energy bills and contribute to Net Zero. You can read ACRE’s original briefing here: https://acre.org.uk/briefing-vat-relief-on-energy-saving-materials/
Autumn Statement 2023
5.152 Reforms to Energy-Saving Materials VAT Relief - Following a call for evidence, the government will expand the VAT relief available on the installation of energy-saving materials by extending the relief to additional technologies – such as water-source heat pumps – and bringing buildings used solely for a relevant charitable purpose within scope. Thanks to the Windsor Framework, these reforms will be implemented UK-wide in February 2024. Full details on these reforms will be published shortly.
Deborah Clarke, ACRE Rural Evidence & Village Halls Manager, said of the announcement “I’m really pleased that ACRE and other voluntary sector organisations have been listened to, and that the Government is extending VAT relief on energy saving materials so it applies to buildings solely for a relevant charitable purpose.
“Subject to learning the details of the changes, thousands of pounds will be saved by village hall committees undertaking energy efficiency work to their buildings”