Air Conditioning Tax Credits

In order to encourage the use of greener, more energy efficient products, the Government has introduced tax incentives for both businesses and homeowners.

In 2001, the Enhanced Capital Allowance Scheme (ECA) was set up to provide financial rewards for those companies who install energy efficient equipment. This covers all qualifying systems, as well as the labour required to install them, and means that once installed, the whole system becomes 100% tax deductible. As a result, within the financial year in which the system is installed, it’s possible to offset the whole cost of the system against taxable profits.

The Government also has a scheme in place to reward homeowners for installing energy efficient heat pump systems in their properties. In order to encourage more people to invest in these systems, the Government has granted a reduced VAT rate of just 5%.

That's because heat pumps are highly energy efficient and economical, as rather than relying on fossil fuels to heat a property, they extract all available heat from the air. It's therefore possible to use up to 80% less power than with other forms of heating, while still having the benefits of effective and fully controllable heating.

Call 020 8951 0495 to arrange your installation!

Remember domestic cooling and heating systems attract the reduced rate at 5% for VAT.