Budget 2026 confirms 0% VAT on fitted roof and loft insulation ends on 31 March 2027

By Charlie the Roofer for Roofline · Published 29 October 2026 · Checked against the sources listed below

What the Budget said

The Chancellor delivered Budget 2026 on 28 October 2026. Two lines in the Budget document matter to anyone planning roof work.

• VAT on energy saving materials. The Budget confirms that the zero rate ends as planned, and the reduced rate of 5% applies from 1 April 2027. Heat batteries are being added to the list.
• Building regulations. The government says it will not make major changes to building regulations for the remainder of this Parliament, except to keep improving building safety, including the Grenfell Inquiry recommendations.

How the insulation VAT rule works

HMRC VAT Notice 708/6 says a zero rate applies to the installation of certain energy saving materials from 1 May 2023 to 31 March 2027. From 1 April 2027 they revert to 5%. Insulation for roofs and lofts is on the list, along with walls, floors, ceilings, water tanks and pipes.

There are three conditions worth knowing.

• The relief covers materials that are installed in residential accommodation, such as houses and flats. If you buy insulation without having it fitted, it is standard rated.
• The material has to be installed because of its insulating qualities.
• If other work, such as building repairs, is done at the same time, that part is standard rated. HMRC says the charge must be split fairly between the two.

So on a re-roof, the new tiles, battens and labour on the covering carry standard rate VAT. The insulation part of the job can be zero rated if it is fitted by 31 March 2027.

What this means if you are planning a re-roof

Stripping and re-covering most of a roof usually counts as renovating a thermal element, so Building Control should be notified and the insulation brought up to current standards where it is feasible. Our guide to re-roofing and Building Regulations explains when that applies. On the Budget statement, those rules are not expected to change in a major way for the rest of this Parliament.

• If a new roof is likely in the next few months, ask for the insulation to be priced as its own line on the quote.
• Check the quote shows the VAT rate on each line, so you can see which part is zero rated.
• Ask your roofer to confirm the insulation will be fitted on or before 31 March 2027. Work after that date is charged at 5%.
• If your roof only needs a repair, the VAT change does not affect it. Repairs are standard rated either way.

Our winter roof checklist covers what to look at from the ground in the meantime.

Get an itemised quote

Roofline is based in Barnsley and covers Yorkshire. Our inspections are free, we send you photos of what we find, and our quotes are free and itemised, so the insulation and the roof covering show as separate lines. Send a photo on WhatsApp to 07413 797731, or book a free inspection through our contact page.

Sources

1. HM Treasury: Budget 2026 (28 October 2026)
2. GOV.UK: Budget 2026 speech (28 October 2026)
3. HMRC: VAT on energy-saving materials and heating equipment (VAT Notice 708/6)

General information about roofing in England, checked against the sources above when published. It is not a substitute for advice about your own roof.