Reduced VAT rate of 5%

Quick, take advantage of the reduced VAT rate of 5% on energy saving materials, which includes Air Source Heat Pumps, as this may all change next year!

The reduced VAT for energy saving materials mainly applies to residential applications such as houses, flats or other dwellings. However at this present time the reduced VAT also applies to armed forces residential accommodation, children’s homes, homes providing care for the elderly, disabled or people who suffer drug or alcohol dependency or mental disorder, hospices, school and University residential accommodation, self catering holiday accommodation, permanently sited caravans (7m plus long or 2.3m wide) and permanent residential houseboats (subject to council tax). Charities providing certain social, recreational or residential facilities may quality until April 2013.

How the reduced VAT rate works

The reduced rate mainly applies to residential properties.

Find out further information on the HMRC website.

Please note: the link relates to the current status only. Space Air will advise when more is announced about VAT changes.

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