Reduced VAT on Domestic Energy Saving Equipment

What installations are reduced-rated?

The reduced rate applies to the installation of certain heating equipment in the sole or main residence of a qualifying person.  This includes the price of the equipment itself.

One of the types of equipment allowable under the scheme is air source heat pumps: These use the air as a source of heat. Some air source heat pumps can be reversed so that they draw heat from inside a building, thus providing cooling during the summer as well as indoor heating for colder periods of the year.