If you’ve ever considered installing air conditioning in your home but hesitated because of the cost, there’s now a significant reason to reconsider. Thanks to a UK government-backed initiative, homeowners can now benefit from 0% VAT on air conditioning installations — potentially saving hundreds or even thousands of pounds on the final bill.
This tax relief is part of a wider push to encourage energy-efficient home improvements and reduce household carbon emissions. In this guide, we’ll cover everything you need to know about the 0% VAT scheme for air conditioning, including how it works, who qualifies, how air conditioning can help throughout the year, and what to watch for when hiring an installer.
We’ll also take a look at typical prices, popular brands, and why comparing quotes is essential before getting started.
What Is the 0% VAT on Air Conditioning Scheme?
The 0% VAT scheme is part of a broader UK government energy-saving initiative designed to make environmentally friendly home improvements more affordable. Since 1st April 2022, qualifying energy-saving installations — including some air conditioning systems — have become VAT exempt.
What does this mean in real terms?
Normally, VAT is charged at 20% on most goods and services in the UK, including air conditioning installation. However, under this scheme, the VAT rate has been reduced to 0% when the system being installed meets certain criteria.
The scheme covers:
- Energy-saving materials
- Installation of qualifying systems
- Labour costs
- Some types of air-to-air heat pump units
This 0% VAT incentive will remain in place until March 2027, giving homeowners a generous window of opportunity to make improvements.
What Types of Air Conditioning Qualify?
It’s important to note that not all air conditioning systems qualify for the VAT exemption. The tax relief typically applies to:
- Air-to-air heat pumps
- Systems with dual functionality (cooling and heating)
- Units installed as part of a broader energy-saving retrofit
In most cases, traditional standalone cooling units do not qualify unless they also provide heating, use inverter technology, or fall under the “renewable or low-carbon” energy umbrella.
Before booking an installation, check that:
- The installer is aware of the 0% VAT rules
- The system meets the required efficiency standards
- You’re provided with a detailed quote showing VAT exemption
Why More UK Homes Are Choosing Air Conditioning
Air conditioning is still relatively uncommon in British homes compared to warmer countries, but things are changing. As our summers get hotter and more unpredictable, demand for cooling and air quality control is rising.
Quick stats:
- In 2023, over 10% of UK households had some form of air conditioning, up from just 3% a decade earlier.
- UK temperatures are regularly exceeding 30°C in summer, especially in cities like London, Birmingham, and Manchester.
- The Met Office reports that average summer temperatures have increased by 0.8°C over the last 30 years.
But here’s the big shift — many modern air conditioning units now offer heating capabilities too, making them a year-round investment. These dual-purpose systems use inverter or heat pump technology to deliver energy-efficient warmth in winter and refreshing coolness in summer.
Benefits of Installing Air Conditioning in the UK
Summer Comfort
No more sleepless nights or sweaty afternoons indoors. Even a single-room system can significantly improve comfort in bedrooms, living rooms, or home offices.
Winter Warmth
Heat pump-based air conditioning units can be used to heat rooms efficiently during colder months, often more affordably than conventional electric heaters.
Better Air Quality
Advanced filters and dehumidifiers help control dust, allergens, and humidity — particularly beneficial for people with asthma or allergies.
Energy Efficiency
Many systems that qualify for 0% VAT are also highly energy-efficient, which could mean lower monthly bills in the long run.
What Does Air Conditioning Installation Cost?
The total cost of installing air conditioning in your home depends on several factors:
- Size of the area being cooled/heated
- Number of indoor units
- Brand and model
- Installation complexity (e.g. pipework length, access)
- Whether VAT applies or not
Average prices (with 0% VAT applied):
| Type of System | Typical Cost Range |
|---|---|
| Single-room wall unit | £1,500 – £2,500 |
| Multi-split system (2–3 rooms) | £3,000 – £5,000 |
| Whole home system | £6,000+ |
Tip: Always ask for a VAT breakdown in your quote so you can be sure you’re receiving the 0% rate where applicable.
How to Compare Quotes and Find the Best Deal
With demand growing, there are more installers on the market than ever — but prices and quality can vary.
Here’s how to approach it:
- Get multiple quotes – Aim for at least three from different local firms.
- Request a VAT exemption confirmation – Not all installers will flag this up automatically.
- Look for trade accreditation – See next section for trusted bodies.
- Read customer reviews – On Google, Trustpilot, or Checkatrade.
Many homeowners now use free quote comparison services, which connect you with trusted local installers offering competitive prices. These services can also help confirm if your installation is eligible for 0% VAT.
Choosing a Trusted Installer – What to Look For
Choosing the right installer is crucial — not just for getting a fair price, but to ensure your system is eligible for VAT relief and installed to a high standard.
Look for installers who are:
- TrustMark registered (Government-endorsed quality scheme)
- REFCOM certified (Mandatory for handling refrigerant gases)
- MCS accredited (For renewable heat pump systems)
- F-Gas certified (Legal requirement in the UK)
Many reputable installers will display these logos on their website. If in doubt, ask directly before proceeding.
Also, check what warranties are offered on both the system and the installation work — most trusted companies will provide 2 to 5 years of cover.
Most Popular Air Conditioning Brands and Models in the UK
With so many brands on the market, it’s easy to feel overwhelmed. Here’s a breakdown of the top-rated air conditioning brands in the UK, known for their performance, reliability, and eligibility for 0% VAT systems.
Leading Brands:
- Daikin – Known for low energy use, quiet operation, and long lifespan
- Mitsubishi Electric – Great for both single and multi-room setups
- LG – Sleek, smart-enabled systems with good energy ratings
- Panasonic – Offers solid mid-range units ideal for family homes
- Fujitsu – Compact and efficient; ideal for bedrooms and lofts
Best-Selling Models in 2024:
- Daikin Stylish FTXA-AW – Energy-efficient, low-profile design
- Mitsubishi Zen MSZ-EF – Elegant with whisper-quiet operation
- LG ArtCool Mirror – Smart features and premium aesthetics
- Panasonic Etherea Z Series – Excellent for heating + cooling with nanoe™ air purifying tech
Before buying, ask your installer whether a model is eligible under the 0% VAT scheme, as criteria may vary slightly between brands and systems.
Conclusion: Take Advantage of 0% VAT on Air Conditioning While You Can
Whether you’re struggling through humid summer nights or looking for a more efficient way to heat your home, modern air conditioning could be the solution. And with the government’s 0% VAT scheme, the upfront cost is now more manageable than ever.
From improved comfort and air quality to year-round temperature control and lower energy bills, there are many reasons to make the investment now — especially while this generous tax relief is still in place.
Ready to get started?
✔ Compare free quotes from local, vetted installers
✔ Find out which models qualify for the 0% VAT
✔ Improve your home comfort — all year round
Don’t miss out — the 0% VAT on air conditioning is available until March 2027, but early action could save you even more in rising installation costs.