Reduced Vat on Home Air Conditioning

As part of its commitment to reducing the emission of gases responsible for global warming, the Government has awarded a reduced rate of VAT to the supply and installation of heat-pump air-conditioning systems in residential properties.

They state 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".

Previously, the rate of VAT applied to our residential sales has been the standard 15.0%.  The new rate of VAT on qualifying equipment is now just 5%.

example saving

The supply and installation of a heat-pump, wall-mounted system is priced at £1250.00 ex Vat.  With VAT applied at the standard rate of 15.0%, the total cost to the customer is £1437.50.

The same job with VAT now applied at the lower rate of 5% reduces the total cost to the customer to £1312.50, in turn providing a saving of £125.00!

When you consider that the electrical consumption of the example heat-pump system is less than a quarter of that consumed by any other form of electric heating,  the savings (both short and long-term) are obvious, in addition to which a facility to cool your home is gained.

For further information on reduced Vat on home air conditioning, either contact us via our contact page or call us today on 0118 930 4404.

We look forward to speaking with you soon.