»Ê¹ÚÌåÓýapp

»Ê¹ÚÌåÓýapp liability of leasing arrangements is covered by the VAT Act 1994, Schedule 7A, Group 3, Items 7 and 8.

»Ê¹ÚÌåÓýapp Affordable Warmth Programme (AWP) was developed by Transco, the then Department of Trade and Industry (DTI) and the Department of Environment, Transport and Rural Affairs (DETRA), now known respectively as the National Grid, the Department of Business Innovation and Skills (BIS) and the Department of Environment, Food and Rural Affairs, (DEFRA), to combat fuel poverty in low-income households. »Ê¹ÚÌåÓýapp central heating part of the package is funded by a commercial operating lease paid for by local authorities and Government under the Warm Front Scheme. »Ê¹ÚÌåÓýapp operation of the Affordable Warmth Scheme (AWS) is now led by the National Grid, and overseen by DEFRA.

»Ê¹ÚÌåÓýapp scheme works as follows:

GoodsCo supplies goods (central heating systems) to LeaseCo for installation in the sole or main residence of a qualifying person. »Ê¹ÚÌåÓýapp supply is standard-rated.

LeaseCo leases the goods to the scheme managers (local authority, registered social landlord or similar). »Ê¹ÚÌåÓýapp supply is reduced-rated.

InstallationCo installs the systems in the sole or main residence of the qualifying person, and bills the charges of installation service to the scheme managers. »Ê¹ÚÌåÓýapp supply is reduced-rated.

At the end of the leasing period the National Grid buys the assets from LeaseCo. »Ê¹ÚÌåÓýapp supply is standard-rated.