As part of the 2022 spring statement “mini-budget”, the chancellor declared a change in the VAT for green and low-carbon boiler replacements like heat pumps. But with ever rising energy bills, you’re probably wondering how exactly this VAT reduction can help you.
With over 35 years’ experience in providing air conditioning and heat pumps across a wide range of commercial and residential builds, Cool-Tec are well placed to explain what the VAT deduction scheme means for you.
Contact us today to learn how our Safe Contractor-approved experts can install the heat pumps for your property.
Chancellor abolishes VAT rate from 5% to zero on heat pumps
As part of his spring statement, British Chancellor Rishi Sunak announced that from April, all VAT on installing energy efficient systems will be cut from 5% to zero. This scheme is set to last for the next five years and covers technologies such as heat pumps, solar panels and insulation. The rationale behind such a green initiative coincides with the government’s net zero strategy.
Heat pumps predicted to be £500 cheaper
As a result of this VAT deduction scheme, The Guardian predicts that heat pump installations will now be approximately £500 cheaper.
£5,000 Government Grant for Heat Pumps
The chancellor’s VAT cut announcement follows that of the £5,000 government grant provision, which, as part of a £450 million Boiler Upgrade Scheme is aimed at helping households install low carbon heating systems like heat pumps. Revealed in October 2021, these grants were available from the start of April 2022 and should now be available.
Your local heat pump installation experts
Trust Cool-Tec for your property’s heat pump system – the eco-friendly choice for all your heating, cooling and hot water needs.
We will work with you to design, install and maintain your heat pump system, with emergency repairs available 24 hours a day, 7 days a week. We pride ourselves on providing competitive prices (which are now less thanks to the VAT cut) as well as a quick turnaround.