VAT on external wall insulation: 0% until March 2027
The short answer
Installing energy-saving materials, including wall insulation, in residential accommodation is zero-rated for VAT until 31 March 2027, after which the rate is due to return to 5%. Materials bought without installation, and work on commercial buildings, are standard-rated at 20%.
Who qualifies
The relief covers installation of qualifying energy-saving materials in residential accommodation. It has applied in Great Britain since 1 April 2022 and in Northern Ireland since 1 May 2023. Your quote should show the VAT treatment clearly.
What changes in April 2027
From 1 April 2027 the rate is scheduled to revert to 5%. On a £15,000 job that would be an extra £750. Work is taxed by when it is supplied, so ask how timing affects your job if it straddles the date.
What doesn't qualify
Materials bought on their own, and insulation work on non-residential buildings, are standard-rated. Associated work that is not part of installing the energy-saving materials may be treated differently; your quote itemises it.
Related services
Questions people ask
Does 0% VAT apply to rented homes?
Yes, the relief covers residential accommodation, including rented homes.
Does it apply to render repairs?
Repairs that don't install insulation generally don't qualify.