VAT reduction for over 60s

FCA_ACF

I'm trying to improve energy performance for my home which is an old thatched cottage. Measures include installing underfloor heating and insulation within the concrete slab. This has snowballed since existing floor slabs have had to be cut and removed. Can't lay new slab until chimneys are brought up to code, which requires formal planning permission to extend chimney heights. Asbestos was discovered in old flues not disclosed at time of purchase – now removed. New slab and screed will take months to dry (1 day per mm of concrete, over 170mm). Projected costs over £30,000

I'll be turning 60 in a few months' time hence wondering if I'll qualify for the VAT reduction? Our builder is not familiar with UK Gov guidance. I've found the relevant info but don't know how to implement. Do I need to hire an accountant and if so, any recommendations for those with the appropriate expertise?

Many thanks,

____gov.uk/guidance/vat-on-energy-saving-materials-and-heating-equipment-notice-7086
____gov.uk/vat-builders/energy-mobility

MWT

I suspect you would fail on the 'mixed supply' rule.

Underfloor heating is not a qualifying product and therefore adding insulation at the time is just a better way to enjoy the underfloor heating and so would not qualify.

Just having floor insulation fitted would qualify, but that would not require all the additional works that you are doing to install the heating as the insulation would be fitted over the existing floor...

Robin9

Since when has age had anything to do with VAT (except childrens clothes)

MWT

Robin9 said:

Since when has age had anything to do with VAT (except childrens clothes)

Actually the reduced VAT at 60 is a real thing.

It is included under the 'social conditions' exception for reduced VAT on some specific energy saving products.

There are very strict limitations on what work and materials qualify, but it places those over 60 in the same category as those receiving certain benefits and grants for the work.

This exception is most commonly used in the Solar industry and in particular in conjunction with the installation of solar and batteries at the same time.

Robin9

Thank you @MWT - I was not aware

[Deleted User]

This link explains how it works for PV solar and batteries:

https://blog.spiritenergy.co.uk/homeowner/get-5-vat-solar-panels

MWT

Outside of solar and some ASHP/GSHP projects not many do know about this one, and to be honest it isn't all that useful in a lot of cases as the limitations prevent projects such as the one the OP is engaged in from qualifying.

The work has to be for the allowed product as the primary cost and reason for the work.

So for example, if you have to enlarge and repair a loft hatch to gain access to insulate the loft then you are covered for the whole job, but if you are replacing an existing roof with a new insulated roof you are not covered for any part of the job.

Thus the project outlined by the OP would not qualify.