VAT on Insulation in the UK: Amount, Duration & Advice

House insulation is a great way to reduce your home’s heat loss and protect it from acoustic nuisance. It can take many forms, including solid wall insulation and cavity wall insulation. Each type will depend on your home's circumstances. 

Multiple insulation grants, such as the Energy Company Obligation (ECO4) and the Great British Insulation Scheme (GBIS), offer full or partial coverage towards house insulation costs.

To meet carbon neutrality targets by 2050, the UK government has designated a 0% VAT rate on insulation and other energy-saving materials, making them more affordable for homeowners. This article will cover everything you need to know about VAT on insulation, including its duration and the relevant rules and regulations in the UK.

Consult a professional for up-to-date advice on insulation and VAT policies! GreenMatch UK  can connect you with up to 3 experts from our network, saving you countless hours of time and effort. This service is free, and you are not obligated to accept quotes. Click below to get started.

Currently, there is 0% VAT on insulation installations across the UK. This 0% VAT rate applies from April 1, 2022, until March 31, 2027. After this period, the VAT rate will revert to a reduced rate of 5%.

The 0% VAT on insulation installation in the UK is temporary, from April 1, 2022, to March 31, 2027. This five-year window applies to England, Scotland, and Wales, with Northern Ireland joining from May 1, 2023.

After this period ends, the VAT rate will reverse back to 5%. This limited-time offer creates a sense of urgency for homeowners to act, aligning with the UK's goal of achieving carbon neutrality by 2050. Therefore, homeowners should take advantage of this tax break before it expires.

The rules and regulations concerning the 0% VAT rate on insulation for walls can be confusing, especially considering the time periods and the differences between regions within the UK and eligible properties. Luckily, we’ve compiled a table with all of the vital information you need to know:

The 0% VAT reduction dates differ depending on whether the property in question is residential, commercial or charitable. 

Here’s a breakdown of the 0% VAT date windows per type of property:

The policy was implemented in Great Britain in April 2022 and Northern Ireland in May 2023. After March 31, 2027, the VAT rate will return to 5%.

So, does the 0% VAT on insulation make it worth it for households or businesses? Well, the short answer is yes, however, this rate only applies to residential accommodation and buildings for charitable purposes.

Moreover, the zero rate covers the supply and installation of insulation for ceilings, floors, walls, roofs, water tanks, and pipes. However, if energy-saving materials are purchased separately without installation, they are subject to the standard 20% VAT rate.

The policy aims to encourage the adoption of energy-efficient home improvements by offering significant tax savings, contributing to the UK's goal of achieving carbon neutrality by 2050.

We recommend consulting insulation experts for the best insulation advice tailored to your situation. To save time and money, consider requesting multiple quotes for comparison. To simplify this process, fill out our quick 30-second form below. We'll connect you with up to 3 experts from our network of professionals at no cost and with no obligation.