HOMEOWNER GUIDANCE · UK VAT RELIEF
Planning insulation for your home? Qualifying installations can currently benefit from 0% VAT. Eligibility depends on the property, the materials, why they are installed and the supply agreed with your installer.
The temporary zero rate is scheduled to end on 31 March 2027. Under current legislation, qualifying installations revert to 5% VAT from 1 April 2027.
The relief applies to qualifying energy-saving materials installed in residential accommodation across the UK. Houses and flats are included. HMRC’s insulation category covers walls, floors, ceilings, roofs and lofts, as well as water tanks, pipes and certain plumbing fittings.
The key test is that materials are designed and installed because of their insulating qualities. Your installer should assess the proposed specification, property use and contract before confirming the VAT treatment.
Explore our insulation and retrofit guidance and compare cork systems to discuss a suitable specification.
No. ECOPROCORK products, SLICS™ and TLICS™ installations do not automatically qualify for 0% VAT. A cork coating used for appearance, surface protection, maintenance or another purpose cannot be assumed to meet HMRC’s insulation test simply because cork has insulating properties.
A proposed ECOPROCORK installation may qualify where the specific materials are designed and installed because of their insulating qualities and all relevant conditions are satisfied. Approved Applicator status is not HMRC approval of a product or a VAT decision. Ask the VAT-registered supplier to confirm the treatment of your particular project, taking professional advice where needed.
Where a business supplies and installs qualifying insulation in eligible residential accommodation, the materials and installation can both fall within the relief.
Materials bought without installation are standard-rated, normally at 20% VAT. This includes materials-only purchases from our shop. A separately appointed installer’s qualifying installation service may still be eligible for 0% VAT, even when you bought the materials yourself. The retailer’s materials sale remains standard-rated.
Repairs, decoration and wider building work do not automatically become zero-rated. Work that is ancillary to a qualifying insulation installation may follow its VAT treatment, but a larger construction supply can have a different result. HMRC gives the example of insulation included in building an extension: the principal extension supply is standard-rated. Your supplier must assess the actual contract and whether there is one supply or several.
31 March 2027 is the scheduled final day of the temporary zero-rate period. From 1 April 2027, the legislation currently provides for a 5% reduced rate on qualifying installations. Non-qualifying work and materials-only sales retain their applicable VAT treatment.
Plan surveys and installation dates early, but do not assume that accepting a quote, making a booking or paying a deposit secures 0% VAT for the whole project. Ask your supplier or VAT adviser to confirm the relevant tax-point and rate-change rules, particularly for work or payments spanning April 2027. Rates and legislation can change.
The current energy-saving materials relief for qualifying residential installations is not restricted to homeowners receiving benefits or meeting an age threshold. The property, insulation and supply conditions still apply.
Qualifying supplies are zero-rated: VAT is charged at 0%. This is different from a VAT exemption. If an installer is not VAT registered, it cannot charge VAT in any event; that alone does not establish eligibility for this relief.
Qualifying installations in residential accommodation can be eligible, including rented homes. Commercial premises and mixed-use properties need separate assessment; do not assume the whole project qualifies.
This relief does not make a homeowner’s materials-only retail purchase zero-rated or create a refund claim on that purchase. Discuss the supply arrangements and VAT with your installer before placing orders.
Do not assume a leisure vehicle or boat qualifies as residential accommodation. HMRC includes certain permanently inhabited caravans and qualifying residential boats under specific conditions. Your supplier should check section 2.21 of Notice 708/6 against the actual circumstances.
Ask your installer to state the system, installation purpose, property use, related works, net price and VAT treatment in writing. A site enquiry or product recommendation is not confirmation of VAT eligibility.
Tell us your postcode, property type, the areas you want to treat and the main purpose of the work. An Approved Applicator can discuss suitability, survey requirements and a quotation. Ask the quoting supplier to confirm VAT eligibility for the agreed installation.
Read more about spray cork costs and quotation factors, browse the applicator directory, or send ECOPROCORK a project enquiry.
Guidance checked on 16 October 2026. Sources: HMRC VAT Notice 708/6, especially sections 1.1, 2.1, 2.3, 2.5, 2.10 and 2.21; and the 2023 energy-saving materials VAT Order.
This page provides general information for homeowners. It is not an HMRC ruling or individual tax advice. The supplier is responsible for applying the correct VAT treatment to its supply.