Zero % Tax on Renewables

VAT ON AIR CONDITIONING SYSTEMS FOR DOMESTIC CUSTOMERS ONLY

The Chancellor’s spring statement for energy-saving materials and heating equipment is now zero-rated for VAT.

Most of us are complaining our homes are either too warm in the summer or too cold in the winter. If you’re looking to make your home a more friendly space to inhabit, then investing in split air conditioning systems could be the answer. These provide energy-efficient cooling and heating and have now been included within the Government change on energy-saving equipment and changed the VAT to zero!

Other incentives have also been included such as the Boiler Upgrade Scheme (BUS) encouraging homeowners to switch from fossil-fuelled heating systems such as; gas and oil to low carbon solutions such as Air Source Heat Pumps which under the MCS scheme we are credited to install allowing you to benefit from the additional £5000 reduction in the costs of the installation. The zero VAT rate is scheduled to remain in place for five years.

Further details regarding the changes can be found on the government website, in particular, the clauses relating to the changes are 2.0, 2.1, 2.10 and 2.18.

If you would like to know more about how BSE|FM can assist you with Split Air Conditioning Systems or Air Source Heat Pumps, please contact us at +44 1444 390 593