The Value Added Tax (Reduced Rate) Order 1998
This Order, which comes into force on 1st July 1998, amends Schedule A1 to the Value Added Tax Act 1994 (c. 23) (Charge at Reduced Rate). It introduces a new relief for supplies, to the less well-off of the service of installation of energy saving materials (and supplies of those materials when made by the person installing them) to the extent to which they are funded by grants under certain schemes. Supplies to which the new relief applies will be taxed at 5 per cent (the same reduced rate of VAT that applies to supplies of fuel and power for domestic use).