Reduced VAT on home mobility aids and energy-saving materials

Some mobility aids can now be purchased with a reduced rate of VAT if you are over 60. A rate of only 5% VAT is applicable on some mobility aids installed in your home.

The reduced VAT rate is applicable to those who are over 60 with a qualifying mobility aid installed in a home they own or share with friends or relations. This applies even if someone else orders and/or pays for the installation, but it does not apply for work done in a residential care home or similar. The benefit is also only received if the item is both supplied and installed.

Items included in the reduced VAT scheme include stair lifts, ramps, bath lifts, grab rails, shower seats, walk-in baths, but not on general changes to a home, such as widening corridors or extending. There is no VAT reduction on any repair work necessary after items have been installed.

Suppliers should be aware of reduced rates of VAT and automatically apply the reduction to your bill. However, you will need to prove that you qualify by giving them a written declaration. The supplier may have a form that you can use.

VAT is also reduced on energy-saving materials. These include controls for central heating and hot water systems; insulation on walls, floors, ceilings, lofts, etc; draught insulation (eg around windows and doors); wind turbines; water turbines; solar panels; air-source heat pumps; ground-source heat pumps; wood-fuelled boilers; micro combined heat and power units.

The range of items is wider if work is being funded by a grant.

The VAT is reduced when energy-saving items such as these are installed in your home. If installed in a new home, there is no VAT payable at all, and that includes paying no VAT on the work done by the building contractor.

The reduced VAT is only applicable if the items are bought and installed (i.e. not if they are just bought). There is also a lower rate of VAT on any extra work necessitated as part of the installation.

For clarity, here are some items that are not eligible for reduced VAT: energy efficient boilers; low emission glass; energy efficient fridge freezers; secondary or double glazing.

If you're over 60, the lower rate applies on the installation, maintenance or repair of a central heating system, or a renewable source heating system as well as home security goods.

In addition, the reduced rate of VAT applies to repairs and replacements of this kind of equipment which are grant-funded, even if the original system was not grant-funded.

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