VAT on Residential Air Con Reduced to 0% in 2022
Chancellor Rishi Sunak announced earlier this year a reduction of 0% VAT on the installation of domestic air conditioning in 2022, making now the perfect time to get air conditioning installed in your home.
Why Has 0% VAT for Air Conditioning Installation Been Introduced?
The decision to reduce VAT for air conditioning to 0% was made by Rishi Sunak in the Spring of this year to cut domestic contributions to carbon emissions and reduce the cost of the current energy crisis for UK households.
The reduction also applies to other ‘energy saving measures including:
● Wood-fuelled boilers
● Wind turbines
● Insulation
● Solar panels
● Ground source heat pumps
● Air source heat pumps
The Rules on Installation of Energy Saving Materials
In the past, systems used to cool were not eligible for the reduced VAT rate. However, the rules have been changed and now as long as the system can provide heating in addition to cooling to a domestic property, it is eligible for the scheme.
Though the Chancellor didn’t include air conditioning units in his statement, air conditioning can be grouped under heat pumps due to the dual use that they offer. While we are in the midst of the hottest months this year and the VAT is at the lowest it has ever been, now is the ideal time to install a residential air conditioning unit and stay cool this summer.
Not only will you be comfortable during the hotter months of the year, but you will also have a reliable source of heat as the frostier months draw nearer.
How Does this Complement the Air Source Heat Pump Grant?
The government recently installed a grant for air source heat pumps in April, which allowed homeowners in England and Wales to apply for a grant of £5,000 for the installation of air source heat pumps. This was part of the government funding package in which the government will provide £450 million over the next three years for 90,000 Air Source Heat Pumps to be installed in Britain.
The introduction of 0% VAT complements the existing grant and provides an even bigger incentive for homeowners to invest in an air source heat pump this year.
Westcott Refrigeration & Air Conditioning: Aircon Installation Near Me
Now couldn’t be a better time to invest in an air conditioning unit to keep your home cool this summer.
At Westcott Refrigeration & Air Conditioning, we offer a range of services including aircon installation, air con hire and much more.
To find out more about the wide array of services we offer,
get in touch with a member of our friendly team here today.
