Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he plans to reinstate VAT relief for the installation of energy saving materials in buildings intended for use solely for a relevant charitable purpose.

The installation of energy saving materials (ESMs) in buildings intended for use solely for a relevant charitable purpose was previously eligible for VAT relief. However, as this was found to be incompatible with EU law, the relief was narrowed to exclude charitable buildings from August 2013.

At Spring Budget 2023, the Government published a call for evidence on reform to the VAT relief for ESMs. Given that the UK has now left the EU, the call for evidence is seeking views on this VAT relief.

The call for evidence is open until 31 May 2023, after which the Government will publish a summary of responses. Any decisions on potential changes to the VAT relief will not be made before this consultation process concludes.