VAT Reduction for Air Source Heat Pumps

As announced on the 2005 budget year, with effect from April 2005 the installation of air source heat pumps in residential accommodation and some charity buildings, will become subject to the reduced VAT rate of 5%.

This will provide a welcome reduction in cost to consumers installing heat pump air conditioning systems to domestic homes in the UK.

All heat pump systems currently supplied and fitted by Blake Air Conditioning to residential accommodation will be subject to the reduced rate.

The reduced VAT rate only applies to equipment which is both supplied and fitted to residential accommodation.  Supply only equipment is still subject to the standard VAT rate.