0% VAT On Heat Pumps
Zero Rated VAT on Energy Saving Materials
In another great boost for the heat pump industry, the Chancellor just announced in his Spring Statement that VAT was going to be zero-rated on heat pumps from 1st April 2022. This change will typically save customers between £500 – £750 on their installation
From 1st April 2022 for a period of five years, the installation of certain energy saving materials – including heat pumps – will attract zero-rate VAT. This change represents both an improvement of the current reduced rate of 5%, but also a significant simplification of the VAT rules to energy saving measures.
This is great news for homeowners looking to install a heat pump, as it adds yet another reason to the ever growing list of reasons to invest in heat pump technology right now!