The Government has announced its intention to defend the UK’s stance on 5% VAT for energy saving materials for residential buildings, which is the subject of a formal challenge from the EU. However under the VAT guidance of HMRC Brief 26/12 they confirm that similar installations in charitable buildings is to be withdrawn from a date following Royal Assent to the Finance Bill 2013 which is likely to be 1st August 2013. Any works that have commenced BEFORE the date will still attract 5% and will apply to the whole installation.
Any charity considering installing energy saving materials should act now and for further VAT help please contact Sarah Shears or Steve McIntyre on 01962 735350.
