We are in the process of building a new home. We have decided to opt for a biomass boiler over oil or LPG.

Somebody has mentioned to my dad that it is best to register it as commercial to get the RHI however I am unsure as to wether it would be that easy.

We do have our own business which would have its registered office as the same address.

I have read somewhere that it would exempt us from being able to claim back our VAT on the build if we registered the property for commercial use.

Can anyone shed any light on this, it is all very mind boggling!!!

Many thanks, Rebecca

  • Tim Pullen

    You are making the right decision on installing biomass heating.

    To register for the commercial RHI scheme (more properly the non-domestic scheme) the heating system needs to be heating more than one building. So if the business is conducted from the house (a home office, say) then it would not qualify as non-domestic.

    If the business is conducted from a separate building then the first step will be to phone Ofgem and ask if your particular set-up qualifies for the non-domestic scheme. It is a difficult and time-consuming business but well worth it if you can qualify.

    In terms of VAT you will build the house and register the business after the build is complete and the VAT reclaimed.

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