0% VAT on Heat Pump Installation

As part of the 2022 Spring Statement, Chancellor Rishi Sunak announced the introduction of 0% VAT on domestic heat pump installations. The move replaces the previous reduced rate VAT scheme, which lowered the rate from 20% to 5% for qualifying customers.

From the 1st April 2022, any installation of a domestic air source heat pump - including those with reverse cycle capability (essentially split type air conditioning systems) - will be eligible for the 0% VAT rate. 

It’s hoped that the new zero rating will encourage more homeowners to invest in these energy efficient temperature control systems, contributing to a reduction in carbon emissions and lowering the burden of the cost of energy crisis. 

If you’re considering such an investment, you might find our articles on the pros and cons of air source heat pumps, and top air source heat pump FAQs useful. 

If you have any further questions at all, or would like to request a quotation, please do get in touch. 

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