As with any building associated project it is important that the favourable classification of these energy saving technologies by HMRC is fully utilised.
You should not be paying more than 5% VAT on your residential geothermal heat pump installation, including the boreholes and component parts. (HMRC Reference:Notice 708/6 (August 2006))
(If your project is a new build you can apply for full VAT exemption!)
The 5% rate does not apply to non residential contracts, i.e. if Synergy works on a non residential project, we will have to charge 20% VAT.
There are some rules to be observed;
You must use a recognised installer and a recognised product supplied and fitted by that installer. This means that if you attempt to save money by buying a heat pump for example, from a website, you will have to pay 20% VAT.
The 15% extra cost to you could finance a better quality heat pump.
Make sure before placing your order with any installer that he is going to apply the 5% VAT rate.
Our apologies for the repeated use of the titles water boreholes and geothermal boreholes on these pages; such are the dictates of search engine requirements.