VAT on boilers

Why a gas boiler has no lower VAT rate

HMRC relieves some energy-saving materials from VAT, such as insulation, solar panels, heat pumps and wood-fuelled boilers. The notice says that energy-efficient boilers are not on that list, so supplying and installing a gas boiler is standard-rated. The detail is in HMRC VAT Notice 708/6, and the list changes, so check the notice if you are relying on it.

When the VAT rate on a boiler may be different

• Grant-funded work. A reduced rate applies to the part of a gas or oil boiler installation that a grant scheme pays for, but only in the sole or main home of someone aged 60 or over, or who receives one of the listed benefits. Anything you pay yourself is still charged at the standard rate. Ask the installer how the scheme treats VAT before you agree a price.
• A new home. Work done by the builder before a new house is completed is part of its construction, so a boiler fitted as part of that project may be zero-rated with the rest. Ask the builder to confirm.
• A heat pump or a wood-fuelled boiler. These are on the energy-saving materials list, so installing one in a home is zero-rated for now, with a change due from April 2027. Electric, oil and multi-fuel boilers are not on the list and are standard-rated.
• Controls fitted on their own. Thermostats, timers and thermostatic radiator valves can be zero-rated when they are supplied alone. Fitted as part of a new boiler or central heating system they become part of one standard-rated supply.

The rules for these cases are in HMRC VAT Notice 708. Replacing a boiler in a lived-in home with no grant gets none of them.

Checking a boiler quote for VAT

A firm that is not VAT-registered does not charge VAT, and some quotes are written without it. When you compare quotes, put them all on the same basis: a price without VAT looks much cheaper than one with it. The quote checker and compare tool do this for you.

To see what a boiler costs with VAT included, read our combi boiler prices, and see how we price for how the rate is applied. You can also get free quotes.

General information, not tax advice. Confirm your own position with the firm doing the work, or with HMRC.