Spring Statement - 0% VAT
Updated: May 12
We recently had some exciting news from the 2022 Chancellor's Spring Statement for the Air Conditioning industry!
Due to hold in place for five years and already in effect, the statement by Chancellor Rishi Sunak reveals that homeowners with energy-saving building solutions installed in their homes, such as heat pumps, no longer need to pay VAT. These benefits will also apply to contractors in the industry. Up to this point, VAT had been charged at 5%.
The Chancellor stated, "Homeowners who have solar panels, heat pumps and insulation installed will no longer pay 5 per cent VAT – they will pay zero".
So if home air conditioning is something that you've been considering, 0% VAT, rising energy prices and other government plans, like the zero-emissions goal for 2050, there has never been a better time, especially with summer just around the corner.
These incentives should boost the market for energy saving, low carbon heat pumps that offer a viable, cost-effective and sustainable heating solution during the winter months and provide cooler conditions on those sticky summer days.
With low running costs and high efficiency, purchasing an air conditioning system to heat and cool your home is a decision that is easy on your pocket and the planet.
The rules on installing energy-saving materials and qualifying installations have also been simplified considerably alongside the cuts. Systems used purely to cool were previously not eligible for the reduced rate. Now, as long as the system can provide heating in addition to cooling to a domestic property, your new air conditioning system is eligible for the scheme. Portable systems still will not be included in the scheme, however.
Most air conditioning systems are considered heat pumps because they can provide heating and cooling, otherwise known as air-to-air heat pumps. Modern-day gasses (R410a and, more recently, R22) have higher pressure and produce more heating power. Modern-day technology means that air conditioning heating is now extremely efficient.
There are many different options to choose from, so it is essential to contact a specialist air conditioning installer in London or Hertfordshire, like Atmosfair, who can advise you on which type and brand of air conditioner is best for your requirements and budget.
Atmosfair provides air conditioning services in London to suit all budgets and applications. Don't hesitate to contact our specialist team for expert advice on installing, maintaining, or emergency repair of an air conditioning system in your home.