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0% VAT on domestic energy-saving air conditioning

October 20, 2022

Saving energy and reducing energy bills is now a priority for everyone. And as part of the government’s drive to reduce carbon emissions, in his Spring Statement the Chancellor announced that from 1st April, a 0% rate of VAT can be applied to all domestic energy-saving solutions that are installed in the UK.

Modern air conditioning can deliver highly-efficient heating so homeowners who are looking to invest in energy-saving heating solutions will now pay no VAT on air conditioning technology as HMRC considers most air conditioning units as air source heat pumps.

What does Air Source Heat Pump mean?

Air source heat pumps use the air as a source of heat. They absorb heat from the outside air and transfer that into usable heat in the home which can then be used for heating rooms and/or water. 

A huge choice of energy-saving air conditioning solutions is available to homeowners. Loop Air Conditioning only supplies and installs air conditioning solutions that are manufactured by leading technology brands.

In addition to low running costs, domestic air conditioning solutions can also filter bacteria and allergens to deliver clean air throughout the home, and they can be controlled by Smart technology, allowing homeowners to optimise energy use.

We also provide FREE home surveys and FREE quotations so please don’t hesitate to get in touch with our qualified engineers.

For more guidance on home air conditioning see our article What to know before installing home air conditioning.

For more information about the government announcement on energy-saving materials and heating equipment follow the link below.

Energy-saving materials and heating equipment (VAT Notice 708/6) - GOV.UK (