VAT relief on Energy Saving Materials

Buildings used for charitable purposes such as village halls should benefit from VAT relief on the installation of Energy Saving Materials (ESMs).

ACRE advocated for the reinstatement of VAT relief on Energy Saving Materials (ESMs) when installed in buildings used for charitable purposes. We argued that this would encourage and enable many of England’s 10,000+ village halls to make energy improvements to their buildings, in turn creating a network of rural institutions that promise to be vanguards of Net Zero in their communities.

This briefing outlines our response to the government’s call for evidence on the issue, drawing on information supplied to us by village halls, as well as our experience of supporting the volunteer management committees who run these buildings.


In response to feedback, the government announced it would bring village halls into the definition of eligibility for VAT relief on ESMs (energy saving materials) from 1 February 2024.

Village Halls undertaking improvement works should check quotes and invoices from suppliers to make sure VAT is zero rated for the installation of applicable materials.