How much VAT will be charged on air conditioning installations?

Some good news from HMRC!

Red Airconditioning Limited are now able to offer air conditioning installations at zero rate VAT.

Following recent clarification, the old qualifying rules of either a test of social conditions or material content being greater than 60% have been scrapped by HMRC.

HMRC Have announced that replacing these tests until 31 March 2027 a zero rate applies to the installation of certain specified energy-saving materials including Fixed Air Source Heat Pumps.Despite the fact that the Chancellor did not mention air conditioning units in his statement, air conditioning can be categorised as a type of heat pump due to the fact that it serves a dual purpose. Air conditioning units make it possible for a home to be supplied with both hot and cold air, so heat pumps and air conditioning can be grouped together.

Fixed air source heat pumps functionally can be reversed so that they can draw heat from inside a building, thus providing cooling during the summer as well as indoor heating for colder periods of the year.

Only air source heat pumps that are permanently fixed and are not portable or moveable qualify as energy-saving materials, so any fixed installation that we carry out with indoor air control units and outdoor heat exchange unit will be zero rated.

Due to the fact that air conditioning is one of the products that are exempt from VAT, now is an excellent time to install a domestic air conditioning unit. Furthermore, because the scheme covers air conditioning units that can deliver either cold or hot air into the environment in which they are installed, the potential cost savings associated with these systems, in comparison to those associated with air source heat pumps, may make them one of the most cost-effective ways to maintain the ideal temperature in your home. Another good reason to install air conditioning by Red Airconditioning Limited..

Air conditioning installation from Red Air Conditioning Ltd

We provide a service that is both quick and of the highest possible standard in the Midlands, serving areas including Leicester, Birmingham, Milton Keynes, Coventry, Nottingham and many more. We are always here to help with any installation or maintenance as promptly as possible thanks to our team of air conditioning specialists.

At Red Air Conditioning, we take great pride in the breadth and depth of our air conditioning product and service offerings. Our skilled air conditioning installers are available to assist you with everything related to your air conditioning system, including installation, maintenance, and emergency repairs, whether you are a residential or a commercial client. Our specialised professionals have the training and knowledge to assist you with everything from regular air conditioning maintenance to the installation of brand new air conditioning systems – and there really is no better time to have one fitted.

Locations we service

Air conditioning Leicester

Air conditioning Nuneaton

Air Conditioning Coventry

Air conditioning Tamworth

Air conditioning peterborough

Air Conditioning Nottingham

Air conditioning birmingham

Air conditioning luton

Air Conditioning milton keynes

Is Air Conditioning Better Than Central Heating?

When people think of air conditioning, they tend to think of a HVAC system that provides a reprieve from truly intensive heat conditions. By conditioning the air, not only does the air quality improve, but we can make sure that even during the hottest moments of the summer, our inside living environment is tolerable and comforting.