Guide
Is there VAT on external wall insulation?
Installing insulation for walls in residential accommodation is zero-rated for VAT in Great Britain from 1 April 2022 to 31 March 2027, and in Northern Ireland from 1 May 2023 to 31 March 2027. From 1 April 2027 the reduced rate of 5% is due to apply. Render-only work, repairs, cleaning and commercial work are normally standard-rated.
What qualifies
The relief covers the installation of qualifying energy-saving materials — including insulation for walls — in residential accommodation and, since 1 February 2024, in buildings used solely for a relevant charitable purpose. It applies to installed work, not to materials you buy yourself. Scaffolding and preparation that are part of the insulation job fall within the same supply.
What usually doesn't
- Re-rendering or new render without insulation
- Repairs and cleaning
- Commercial and other non-residential buildings, unless used solely for a relevant charitable purpose
- Materials supplied without installation
How it shows on your quote
Your written quote shows the VAT treatment for each line, so you can see which elements are zero-rated and which aren't.
Questions
Does the 0% rate apply to flats?
Yes, residential accommodation includes flats.
What happens on 1 April 2027?
The rate for qualifying installations is due to move to the 5% reduced rate.
Does it apply to park homes?
Residential park homes used as homes are generally treated as residential accommodation; your quote confirms the treatment.