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 you want to read the regulation to be sure click here.

(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 17.5% 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 17.5% VAT.

The 12.5% 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.

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