Heating: VAT

(asked on 22nd July 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what plans he has to change the rate of VAT applied to air source heat pumps installed in dwellings and buildings used for a residential purpose.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 1st September 2020

Under current VAT rules, the installation of water and wind turbines is subject to the standard rate of VAT. However, the installation of other energy saving materials (ESMs) remains subject to the reduced rate of VAT when certain conditions are met.

Although there are no plans to extend the scope of the relief already in place, the Government keeps all taxes under review.

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