Exterior Wall Finishes

VAT for energy saving materials and installations should be at a reduced VAT rate.

So for exterior wall insulation this covers installing the work and materials including the render finish (the thermal material  has to be protected)

For residential homes and charitable dwellings or offices  good news all round save money on heating improve the value of the home and beat the VAT increase.

2.8 Insulation

Insulation means materials that are designed and installed because of their insulating qualities.

The reduced rate applies to installations of insulation for:

• walls;
• floors;
• ceilings;
• roofs or lofts; and
• water tanks, pipes or other plumbing fittings

2.3 Incidental work

Any work that you undertake as part of the installation process is eligible for the reduced rate.

This includes minor building works, such as planing doors or windows, enlarging loft hatches, and painting or plastering to make good.

But if the installation of energy-saving materials is incidental to another supply you are making – such as the building of an extension or the replacement of a roof – you are making a single supply of construction services (see Notice 708 Buildings and construction).