Zero Rate VAT Relief

In March 2022, Rishi Sunak announced additional VAT relief for the installation of energy saving materials (ESMs)

From 1 April 2022 until 31 March 2027 zero rate VAT will apply to the installation of certain specified energy-saving materials. From 1 April 2027 the VAT rate will return back to 5%.

Along with the VAT reduction the social policy and 60% test have been removed permanently making the process simpler to follow.

Qualifying premises

The relief only applies to installations of ESMs in, or in the curtilage of residential accommodation, this includes:-

  • Houses, blocks of flats or other dwellings
  • Armed forces residential accommodation
  • Children’s home
  • Homes providing care for the elderly, disabled people, or people who suffer or have suffered from drug or alcohol dependency or mental disorder
  • Hospices
  • Institutions that are the sole or main residence of at least 90% of their residents
  • Monasteries, nunneries and similar religious communities
  • Residential accommodation for students or pupils
  • Self-catering holiday accommodation
  • Caravans used as a place of permanent habitation
  • Houseboats that are designed or adapted for permanent habitation

The relief does not apply to hospitals, prisons or similar institutions, hotels or similar establishments.

New Dwellings

The installation of ESMs on new dwellings will remain zero-rated and will not be affected by the law change.

Qualifying Energy Saving Materials

The following energy saving materials qualify for the zero rate VAT relief:-

Controls for central heating and hot water systems
  • Manual or electronic timers
  • Thermostats
  • Mechanical or electronic valves, including thermostatic radiator valves
Draught stripping
  • Fixed around windows, interior and exterior doors, and loft hatches to reduce draughts
Insulation
  • For walls, floors, ceilings, roofs or lofts, water tanks, pipes or other plumbing fittings
Solar panels
  • Solar collectors such as evacuated tube or flat plate systems, together with associated pipework and equipment, such as circulation systems, pump, storage cylinder, control panel and heat exchanger
  • Photovoltaic (PV) panels with cabling, control panel and AD/DC inverter
Ground source heat pumps
  • Transfer energy from natural heat stored in the earth to heat the home and domestic hot water
Air source heat pumps
  • Absorb heat from the outside and surrounding are and transfer that into useable heat in the home for space or water heating, or both
  • Fixed air source heat pumps can be reversed so they can draw heat from inside the building, providing cooling during the summer as well as providing heat for cooler periods
  • Only permanently fixed air source heat pumps qualify as ESMs
  • HMRC understanding is most air conditioning units are air source heat pumps. However, deciding if a particular product is treated as an air source heat pump will depend on the facts of each case.
Micro combined heat and power units
  • Produce heat, water and generate electricity.
Wood-fuelled boilers
  • Boilers designed to be fuelled solely by wood, straw or similar vegetal matter.
  • Where a hopper is integral to the installation of a boiler
  • Multi-fuel or dual-fuel boilers which are designed to burn non-renewable fuels such as coal or oil as well as wood are standard-rated
  • Stand-alone wood-burning stoves are standard-rated
  • Construction or conversion of buildings and extensions for use as log or fuel stores is standard-rated
Wind turbines
  • Installation in residential accommodations of wind turbines together with all the equipment
Water turbines
  • Installation in residential accommodations of water turbines with all the equipment

Installation of ESMs with ancillary supplies

Particular energy-saving materials which are installed with other ancillary supplies are qualified for zero rate VAT relief.

An example of this given by HMRC is the installation of an air source heat pump together with new radiators and pipework in residential accommodation. This is carried out as a single job and for a single price. Larger radiators and pipes are necessary because the air source heat pump operates at a lower temperature than a traditional gas boiler. The customer regards the work as one supply of an air source heat pump. In this example, the installation of the new radiators and pipework are ancillary to the installation of the air source heat pump. This is a single supply that benefits from the relief.

Roundhay Two-Storey Extension, Dormer & Alterations

Case Studies

bourkebuilders

Completion Time: 8 Months
Budget: £255k

Bourke Build were instructed to construct a two-storey side extension, loft conversion and complete internal structural alterations. Because of the extent of the structural alterations this meant the clients vacated the property until the project was completed.

Due to the existing ground conditions an installation of 15 piles up to 4m deep and concrete ground breams were installed by a specialist contractor. For the construction of the two-storey extension and loft conversion it meant Bourke Build had scaffolding to the external perimeter of the whole building and a temporary roof system.

It gave Bourke Build great pleasure that they were easily able to find a match to the stone of the existing property for the new two-storey side extension. For the roof structure Spanish slate tiles were installed to match the existing house.

On the ground floor of the extension a new entrance was formed leading through to the kitchen with a sizable utility room and WC to the side. A stunning modern open plan kitchen was created with a large opening through to the dining room. The existing kitchen is now a cosy lounge area with a flute log burner installed. Crittle style aluminium bifold doors were installed in the kitchen and dining area. For the first-floor extension an additional bedroom was created with an en-suite and large dressing area. In the loft conversion Bourke Build constructed a new bedroom with an en-suite. To bring in as much natural light as possible a large window and two rooflights were installed.  

Bourke Build took the project to a watertight structure, first fix mechanical and electrical and plaster finish for the clients interior designer to add the finishing touches. 

As part of the externals Millboard decking was installed to the rear and front of the property in the colour burnt cedar giving it a consistent look throughout the exterior, coordinating with the doors, windows, and garage. The existing artificial grass was kept in good condition throughout the project for it to be reinstalled at the end.

Bourke Build are pleased with the outcome of this project, as it was always going to be a difficult but satisfying job. It showcases their ability to carry out invasive works sympathetically to the existing home and surrounding area.

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“Working with Sean, Tom and the team at Bourke has been a genuine pleasure. After the stress of our previous extension, I was extremely nervous about this project but they worked tirelessly to keep it on schedule, communicated openly and regularly and just generally did an amazing job on all aspects of the build. I wouldn’t hesitate to recommend them (as I have done already) and I would use them again in a heartbeat. Thanks again!”

MR & MRS SHATWELL

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Tockwith Modern Pavilion

Case Studies

bourkebuilders

Completion Time: 4 Months
Budget: £178k

Bourke Build were instructed to build a modern pavilion which created a living and dining space that leads into the kitchen. A unique feature to this astonishing design is a glass corridor link from the new extension to the existing building.

To form the space between the pavilion and the existing building, the existing bifold doors were removed, timber cladding and partial section of the existing wall demolished to then be rebuilt.

For the exterior of the pavilion Russwood Siberian larch cladding boards were installed and it was important that each board were precisely lined up together, to give it that sleek finish. A triple sliding door, double sliding door, fixed triangle fan light, glazed link and velux windows were all installed with powder coated flashings. This was going to bring in so much natural light.

The internal flooring was tiles to match the existing kitchen to give it consistency throughout, this also applied to the skirting boards. Acoustic panels were installed on the wall behind the TV unit, this enhances the space into something luxurious, but also helps reduce the reverberation and excessed background noise from building up.

New paved terrace was formed surrounding the pavilion with new steps from the grass up to the terrace with step lights installed. 

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“We wanted to take the opportunity to sincerely thanks Sean, Tom, Dave, Jason and all of the wider team at Bourke for what is a remarkable addition to our home.  The Pavillion has immediately become the heart of the home – which was exactly what we wanted.  At the start of the project what struck us was the care, attention to detail and enthusiasm the entire team had and which remained throughout.  What’s more, every single person on site was pleasant, accommodating and mindful that they were in  our home which made it as unintrusive as possible.  The finish is second to none and always commented upon by everyone who sees it.  The relationship between us, Bourke and Doma Architects was seamless and any obstacles resolved easily, timely and fairly. We have no hesitation in recommending Bourke (in fact our friends are already using them!) and would, without doubt, use them again for any other building projects we undertake.”

MR & MRS ROBERTS

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Burley in Wharfedale – Studio/Home Office

Case Studies

bourkebuilders

Completion Time: 7 Months
Budget: £135k

This client wanted to create a space to use as a studio/home office which was separated to their dwelling. For Bourke Build to accomplish this they converted their existing detached garage into this space and then constructed a new garage as an extension to the existing garage structure.

To form the extension the side of the existing garage was removed, and temporary supports was installed to the support the structure. The existing paving slabs and driveway block paving in the area of the garage extension was taken up carefully and set aside for re-use. It was important for the stone of the new extension to match the existing garage and house and this was no issue for Bourke Build to achieve.

Within the studio/home office Bourke Build installed a kitchen area and bathroom that was separated into different rooms to the main area. One of the unique elements to this build was the curved wall where the bathroom was located.  

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Huby Greenhouse

Case Studies

bourkebuilders

Completion Time: 3 Months
Budget: £45k

Bourke Build were instructed to carry out the groundwork involving removing the topsoil over a 130m2 area for the foundations and construct the stonework for the base of the greenhouse and planters. It was important for the stonework to be precise for the greenhouse frame to sit in properly. The challenging part of the project was the circular wall but with an experienced team and effective techniques this was achieved with no concern.  

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Cleckheaton Two-Storey Extension

Case Studies

bourkebuilders

Completion Time: 9 Months
Budget: Phase one – £140K / Phase two – £135K 

This project was split into two phases which Bourke Build had full management of. During the project there was multiple design changes which we took in our stride and actioned. 

Phase 1 included demolition of the existing outbuilding, garage and previous extension to build the new two-storey side extension and single-storey rear extension. Asbestos was found in the garage roof, approximately 30m2 of the sheeting was removed by a specialised asbestos removal team.

Phase 2 was the fit out in original build this included installing a new kitchen, utility, downstairs bathroom, boot room for the dogs, office, new staircase, 2 large sliding doors and French Casement window in the main bedroom. In the two-storey side extension this included a bathroom, kitchenette, staircase, double aluminium windows and sliding French doors

In the rear garden Bourke Build created a patio area with bricks replicating the ones used on the house to create consistency, Indian Sandstone Paving and glass balustrade surrounding the area and steps.

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We are really pleased with the outcome and you have made a difficult time pretty easy for us.  If we ever planned to do this again we would have no hesitation using you all”

 

DR RAHMAN & DR HANN

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Horsforth Extension & Basement Conversion

Case Studies

bourkebuilders

Completion Time: 6 Months
Budget: £145k 

Bourke Build were instructed to construct a single storey rear extension, basement conversion, internal and external alterations. The entire project was fully managed by Bourke Build to ensure the project ran smoothly and efficiently.

As the works started to take place Bourke Build had discovered a live well measuring 1000m wide and 4600mm deep near to the boundary wall. As this was unbeknown to the client and Architect prior to the works it caused a setback until Bourke Build, Architect, Structural Engineer and client all did some investigations and agree on an appropriate plan for the next steps forward. The solution was to completely fill the well with 150mm sandstone to allow it to remain live and bridge over it with RC ring beam.

Fortunately, after the initial hiccup everything then started to go smoothly. The single storey rear extension was built for the client to have a large open plan kitchen, dining and lounge area with a wrap over oriel window, flat roof light and pivoting door. To build the extension a special manufacturer was used to replicate the stone on the original building (even the soot on the stone). The basement which was once used as a place of storage had now been converted into an office space with French sliding doors installed to access from the front garden. 

The Yorkshire paving flags originally as the basement and kitchen floor were re-used for the front garden. In the rear garden the old flags were uplifted and replaced with Riven Stone Flags to give it a much brighter and modern look next to the newly laid AstroTurf.

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“Thank you all for doing such a fantastic job on the project!

An excellent team effort, wonderful design from James, perfectly brought to life by Sean, Tom and the Bourke Team!

Everyone’s attention to detail and working to the highest standards throughout had been evident from the first moment; and dealing with the unforeseen challenges had been seamless.

I’m sure you are all really proud of your work and we are delighted to be able to live in it as our home.”

MR & MRS HERRIOTT

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Harrogate Apartments

Case Studies

bourkebuilders

Completion Time: 5 Months
Budget: £245k 

The property located walking distance from the wonderful Harrogate town centre was a neglected terraced house which Bourke Build transformed into three modern apartments. It was apparent the property was left in a terrible condition that required extensive structural work to a point where it was only the front and rear facades remaining and a full refurbishment to the entire property to bring it back to life again. All three apartments had new bathrooms and kitchens installed with marble effect tiles and worktops to give it that luxurious look. Bourke Build constructed a dormer to create a kitchen/dining and lounge area for the third apartment.

For the exterior of the property Bourke Build replaced the existing windows, sandblasted the stonework and repointed, and decorated the window reveals which gave it an exceptional transformation.

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Huby Changing Room

Case Studies

bourkebuilders

Completion Time: 1 Month
Budget: £25k 

The client approached Bourke Build with a design to create a separate room to their spectacular swimming pool. The room was to be a changing room, walk in shower and bathroom next to the waterfall which conceals the room from the swimming pool, Bourke Build assisted with the design and completed the fit out.  Dating back to the 14th century the historical deco panelling which is now extremely popular was installed on every wall, decorated with specialised paint to stop moisture damage in shade Luja 7 and then finished with gold ironmongery to achieve the final look.

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“Sean and his team did a superb job for us, turning the unfinished shell of our extension into a fabulous bathroom/ changing area; including a walk in shower, panelled walls with tiled floor, lighting design and full decoration. His attention to detail is second-to-none and you really feel like he is a safe pair of hands. Sean communicates well at all stages, providing regular updates against the project plan and invoicing schedule. What’s more, he’s a likeable person who was a pleasure to work with. I would never hesitate to recommend Bourke Building and Refurbishment”

MR & MRS MCCUDDEN

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Battersea Remodel & Refurb

Case Studies

bourkebuilders

Completion Time: 5 Months
Budget: £165k

Bourke Build were instructed to work alongside the internal fit out company to transform a 100-year-old Victorian style terraced house into a luxurious living space. 

As the property had been vacant for a vast period with no maintenance and the structure significantly degraded, the rear of the building was near to collapse. The first section of the works was to stabilise and rebuild the rear.  Bourke Build then moved on to the internal structural alterations which entailed only the front and rear facades remaining. 

An extensive refurbishment had to be carried out to save the building and make it fit for habitation. Fortunately, with years of experience and the right propping equipment Bourke Build managed to complete all the works safe and soundly. 

3 weeks into the project the architect advised Bourke Build that the client had also purchased next door, and this was also to be refurbished in tandem with the derelict property (no pressure!).

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