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Renewables firm welcomes VAT decision

Leading regional installer has welcomed news of what looks like an and government U-turn on a proposed VAT hike on renewables. 

The favourable five per cent VAT rate on ground source and air source heat pumps, biomass boilers and solar thermal panels was due to rocket to 20 per cent in line with a ruling from August 1 2016. 

But in an amendment to the Finance Bill, a cross party group of MPs objected to the move and now Downing Street has said will not oppose an amendment to the Bill to retain the five per cent sweetener for going green. 

And, at the same time, the European Commission has said it will bring forward proposals to allow “flexibility” in the VAT rates applied to different products within EU countries. 

, owner of Heat Pumps, said: “We are delighted that it appears the five per cent reduced rate on renewables may be here to stay. Putting up the rate would fly in the face of attempts to promote sustainable living and thwart the drive towards hitting the ’s carbon reduction target.” 

Yorkshire Heat Pumps supplies and installs ground and air source heat pumps and biomass boilers from its base. Run by Michael and Kate Wright, the company prides itself on the quality of its installations and unparalleled customer service and care.

Michael Wright YHP
Michael Wright

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