The short answer
In Great Britain, loft insulation installed by a supplier currently attracts 0% VAT, under a relief that runs to 31 March 2027. This applies to the supply-and-fit of qualifying energy-saving materials, including insulation, in residential properties — covering both the materials and the labour when the installer provides both. After the relief period the rate is due to return to the reduced rate of 5%. Materials bought on their own for DIY do not get the same zero rate, and Northern Ireland has its own arrangements. The relief lowers the cost of professionally installed insulation noticeably.
VAT on insulation changed significantly in recent years, and the rules reward having it professionally installed. Here is exactly how the relief works.
VAT on insulation at a glance
- GB rate now0% (zero-rated)
- Applies toSupply-and-fit by installer
- Time limitTo 31 March 2027
- After 2027Reverts to 5%
- DIY materials aloneNot zero-rated
What the 0% VAT relief covers
The UK government zero-rated the installation of energy-saving materials in residential accommodation in Great Britain, a relief that includes insulation such as loft, cavity wall and solid wall insulation. The key condition is that the work is a supply-and-fit by the installer: when a contractor supplies the insulation and fits it as a single service, the whole bill — materials and labour together — is zero-rated.
This is a genuine saving. Where you would once have paid 20% VAT, and more recently 5%, on installed insulation, qualifying work in Great Britain now carries no VAT at all for the duration of the relief. For a household paying privately for a loft top-up, that directly reduces the price an installer can charge.
The limits: DIY, time and Northern Ireland
The relief is generous but specific. Three limits matter in practice.
| Situation | VAT position |
|---|---|
| Installer supplies and fits (GB) | 0% (zero-rated) to 31 March 2027 |
| You buy materials only (DIY) | Standard VAT on the materials |
| After 31 March 2027 (GB) | Reverts to 5% reduced rate |
| Northern Ireland | Separate arrangements apply |
Indicative position for guidance, 2026. VAT rules are set by HMRC and can change — confirm current rates with HMRC or your installer.
Why the relief favours professional installation
The structure of the relief deliberately rewards having insulation fitted by a contractor rather than buying materials to install yourself. Because the zero rate attaches to the supply-and-fit service, the labour element — which would otherwise carry VAT — is also relieved. For many households this narrows the gap between the DIY price and the professional price, since the professional quote no longer carries the VAT that used to make it markedly dearer.
The relief is currently time-limited to 31 March 2027, after which the rate is set to return to 5%. That makes the period up to early 2027 a favourable window for paying privately to insulate. For households that qualify for ECO4 or the Great British Insulation Scheme, the question is largely academic — the work is funded — but for everyone else, the zero rate is a meaningful reduction. As VAT rules can change with government policy, confirm the current position with HMRC guidance or your installer before relying on it.
How the relief should appear on your bill
When you receive a quote or invoice for installed loft insulation in Great Britain, the VAT line should reflect the zero rate — in practice you should see the insulation supply-and-fit charged with no VAT added. A reputable installer who is registered for VAT will apply the relief automatically for qualifying work, so if a quote includes 20% VAT on insulation installation, it is worth querying whether the relief has been applied correctly. The relief is a feature of how the work is taxed, not a discount the installer is granting from their own pocket, so it should not be presented as a special offer.
There are nuances at the edges. Where a job mixes insulation with non-qualifying work — for example boarding a loft for storage, or building a conversion — only the qualifying energy-saving element attracts the zero rate, and the rest follows its normal VAT treatment. That is why itemised quotes matter: they let you see which parts of the work are relieved and which are not. If your circumstances are unusual, or the work spans several elements, the definitive source is HMRC's own guidance (Notice 708/6), which sets out exactly what qualifies. For a straightforward loft top-up by a VAT-registered installer, though, the position is simple — zero VAT for now, reverting to 5% after the relief period ends.
Frequently asked questions
Is loft insulation really VAT-free right now?
In Great Britain, supply-and-fit insulation by an installer is zero-rated (0% VAT) under a relief running to 31 March 2027. The materials and labour are both covered when the installer provides both as a single service.
Do I get 0% VAT if I install insulation myself?
No. The zero rate applies to installed insulation, not to materials bought on their own. If you DIY, you pay standard VAT on the insulation you purchase, though you save on labour.
What happens to the VAT rate after 2027?
The relief is currently set to end on 31 March 2027, after which installed insulation in Great Britain is due to revert to the 5% reduced rate. Rules can change, so check HMRC guidance closer to the time.
Sources & further reading
- GOV.UK — VAT on energy-saving materials and heating equipment (Notice 708/6)
- Energy Saving Trust — Roof and loft insulation
Figures on this page are typical UK ranges drawn from published sources and depend on your specific loft. They are guidance, not a quotation.