5% VAT for Residential Heat Pump Air Conditioning
Air conditioning does so much more than simply cool the air; New heat pump air conditioning systems offer the perfect balance of temperature, so that you can enjoy ideal comfort levels all year around.
With global warming remaining a crucial topic, the Government have been making changes to encourage home owners to use “greener” renewable energy sources. Recently, they have launched an initiative to reduce the VAT on residential heat-pump air conditioning systems from 20% to 5%.
This reduction in VAT is also applicable to the installation, repair and maintenance costs of heat pump air conditioning systems.This particular initiative is all part of the UK Government’s Climate Change Programme. 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".
5% Vat Explained
The current rate of VAT is at 20%, so the reduction to 5% on heat pump air conditioning systems will allow homeowners to make significant savings on their new installation and maintenance costs.
As an example, the average UK price of a wall-mounted heat-pump system supplied and installed with 5m of refrigerant pipework is approximately £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.
Please visit the UK Governments Website for more information on qualifying products.