Heating expert wants VAT reduction on new boilers

21st Mar 2011

The managing director of Green Heat is campaigning to reduce the VAT on new boilers down to five per cent.

Peter Thom, managing director of Green Heat, has sent a letter to George Osborne, Chancellor of the Exchequer, requesting his support for the reduction on professionally installed domestic central heating boilers and passive flue heat recovery systems.

At present, professionally installed heating controls, insulation, heat pumps and solar panels are at the lower rate of five per cent, but boilers are at a rate of 20 per cent. Flue heat recovery also shares this higher rate.

Mr Thom’s ambition is for the proposed reduction in VAT to take place for a limited period and then be reviewed in conjunction with the launch of the Government’s Green Deal in 2012.

The reasoning for this proposed VAT reduction is that the heating industry is in decline. It is felt that a two-year planned reduction will increase consumer spending confidence and encourage more people to replace their old inefficient boilers.

An added advantage is that this would help households reduce their fuel bills and help to meet the Government’s carbon reduction targets.