Domestic Air Conditioning VAT Rate


Air conditioning does so much more than simply cooling the air; New heat pump air conditioning systems offer the perfect balance of temperature, so that you can enjoy the perfect comfort levels all year around. However rising energy prices and ever growing concerns about the environment mean that air conditioning must be highly energy efficient too. Air Control & Development can offer heat pump systems that area complete all-in-one solution for superior performance and energy efficiency, to protect the environment in which you live.

With global warming remaining a crucial topic, the Government have been making changes to encourage us to use “greener” energy sources. See here for more information. 

Recently, they have launched an initiative to reduce the VAT rate to supply and install heat-pump air conditioning systems in domestic properties. They believe that this will help reduce harmful gas emissions caused by traditional household heating systems. The reduction in VAT will also count for the repair and maintenance of the air conditioning systems.

A Government representative has said that "reducing the rate of VAT will encourage the increased use of such energy efficient products and will have a positive effect in reducing carbon emissions".

This particular initiative is all part of the UK Government’s Climate Change Programme and the Kyoto Protocol. With residential properties accountable for a quarter of all energy emissions, it’s very important to target them with lower cost, energy-saving solutions, including air source heat pumps.

Homeowner Savings – The Figures

The current rate of VAT is at 20%, so the reduction to 5% on an air conditioning system will allow homeowners to make significant savings on their hear pump system installation and maintenance costs.

As an example, having a wall-mounted heat-pump system supplied and installed could costs around £1250.00 excluding Vat. With the old 20% VAT rate, this brings the total cost to £1500.00.

However, with just 5% VAT, the total cost is £1312.50, saving £187.50!

Heat-pump systems use less than a quarter of the electrical energy consumed by all other electrical heaters, meaning a saving on your monthly bills too. You can keep your home warm in the winter months, cool in the summer and save money and energy at the same time.

Air conditioning does so much more than simply cooling the air; New heat pump air conditioning systems offer the perfect balance of temperature, so that you can enjoy the perfect comfort levels all year around. However rising energy prices and ever growing concerns about the environment mean that air conditioning must be highly energy efficient too. Air Control & Development can offer heat pump systems that area complete all-in-one solution for superior performance and energy efficiency, to protect the environment in which you live.

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