# The Value Added Tax (Reduced Rate) Order 2005

S.I. 2005/726 · made 16 March 2005

This Order, which comes into force on 7th April 2005, amends Group 2 of Part II of Schedule 7A to the Value Added Tax Act 1994 (“Group 2”). Part II of Schedule 7A contains the Groups of supplies of goods and services that are subject to the reduced rate of VAT of 5%.

Made under: Value Added Tax Act 1994 (Section 29A, Section 96)

PDFs: Printed copy https://openlegislation.uk/value-added-tax-reduced-rate-order-2005/pdf/uksi_20050726_en.pdf; Explanatory Memorandum https://openlegislation.uk/value-added-tax-reduced-rate-order-2005/pdf/uksiem_20050726_en.pdf

## Introductory text

VALUE ADDED TAX
Made 16th March 2005
Laid before the House of Commons 16th March 2005
Coming into force 7th April 2005
The Treasury, in exercise of the powers conferred upon them by sections 29A and 96(9) of the Value Added Tax Act 1994, hereby make the following Order:

## 1 

This Order may be cited as the Value Added Tax (Reduced Rate) Order 2005 and comes into force on 7th April 2005.

## 2 

Group 2 of Part II of Schedule 7A to the Value Added Tax Act 1994 is amended as follows.

## 3 

In paragraph 1 of the Notes after paragraph (h) insert—
“(i) air source heat pumps;
(j) micro combined heat and power units.”.

## Signature

Jim Murphy
Nick Ainger
Two of the Lords Commissioners of Her Majesty’s Treasury
16th March 2005

## Explanatory note

(This note is not part of the Order)
This Order, which comes into force on 7th April 2005, amends Group 2 of Part II of Schedule 7A to the Value Added Tax Act 1994 (“Group 2”). Part II of Schedule 7A contains the Groups of supplies of goods and services that are subject to the reduced rate of VAT of 5%.
Article 3 of the Order amends Group 2 (installation of energy-saving materials). Paragraphs (i) and (j) are added to the list in paragraph 1 of the Notes to extend the reduced rate to supplies of the services of installing (1) air source heat pumps and (2) micro combined heat and power units in certain buildings and to supplies of the air source heat pumps and micro combined heat and power units so installed.
By virtue of items 1 and 2 of Group 2, the installation must be in residential accommodation or in a building intended for use solely for a relevant charitable purpose.
A full regulatory impact assessment of the effect that this instrument will have on the costs of businesses is available at www.hmce.gov.uk.

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Source: https://www.legislation.gov.uk/uksi/2005/726 (the official version)
Page: https://openlegislation.uk/value-added-tax-reduced-rate-order-2005
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.