This was an appeal by HMRC against a decision by the FTT on the applicability of the reduced rate of 5% VAT on ‘energy-saving materials’. The issue was if weather roof panels manufactured and installed by Pinevale Limited in conservatories qualified as energy-saving materials.
The FTT allowed Pinevale’s appeal against HMRC that supplies of polycarbonate roof panels and radiation strips for conservatory roofs did not qualify for the reduced rate of VAT. HMRC accepted the decision so far as it related to radiation strips but appealed against the decision that the roof panels qualified for VAT at the reduced rate.
The roof panels were used to form the roof of a conservatory, either replacing or constituting the entire roof, or replacing parts of an existing roof. It was accepted that their purpose was to achieve much higher levels of insulation than would be the case with a conventional conservatory roof,
