HMRC has published consultation documents for the draft legislation that amends the scope of the VAT relief for the installation of energy-saving materials (ESMs) in residential accommodation, to comply with CJEU ruling C-161/14 - Commission v United Kingdom dated 4 June 2015. The document pack includes the draft legislation, draft TIIN, draft explanatory memorandum and draft guidance.
HMRC states that the proposed amendments will:
- maintain the reduced rate on installations of ESMs in residential accommodation for recipients who are aged 60 or over or receiving certain benefits, and for housing associations
- remove the reduced rate for the installation of wind and water turbines
- maintain the reduced rate for all other installations in residential accommodation where the cost of the materials does not exceed 60% of the total cost of installation
Please provide any feedback you would like to contribute to the CIOT’s response (clarity/effectiveness of the legislation, unintended consequences etc) to the consultation to techncial [at] ciot.org.uk by Tuesday 23 April 2019.