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VAT Energy-Saving Materials Relief

HM Revenue & Customs is reviewing VAT treatment of energy-saving materials and technologies, including heat batteries and cladding remediation work, as part of broader energy efficiency and climate policy. The issue involves assessing the effectiveness of VAT reliefs in incentivising energy-saving investments and addressing unintended consequences such as VAT liability on maintenance work. The policy is active with ongoing consultation and implementation of targeted VAT reliefs.

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