Benefits for Homeowners!

VAT reduced to 5% on all domestic Air Source Heat Pump Applications (HMRC Statutory Instrument 2005 No. 726)

By reducing the rate of VAT on energy efficient products, such as Air Source Heat Pumps, which coupled with their lower operating costs make them far more appealing to the final customer than conventional heating systems. Dedicated Air Source Heat Pumps can reduce emissions of harmful gases to the Ozone by as much as two tonnes per year. Therefore you can understand why the government is targeting at a grass root level as in this case, with a view to increasing demand for energy efficient heating systems at the very expense of existing and less efficient heating systems.