We investigated whether the presence of auditory-verbal hallucinations (AVH) was associated with impaired auditory affect perception. Controls, schizophrenia patients with a history of AVH (AVH) or with no history of AVH (NAVH) completed four perceptual auditory affect tasks. The tasks used either non-verbal/non-semantic or verbal/semantic stimuli. AVH patients showed significant impairments on a non-verbal task requiring the recognition of environmental sounds, this was particularly so for the affective stimuli and not the neutral valance stimuli. Thus, confirming auditory affect deficits in AVH patients. AVH patients also showed reduced right ear performance on a dichotic listening task. Conversely, both patient groups showed impairments on auditory affect tasks that used verbal/semantic stimuli; as these tasks require proficient semantic processing we speculated that significant semantic impairments in schizophrenia masked the additional auditory affect deficits present in the AVH group. The overall results support the notion that patients with AVH have increased liability for auditory affect perception deficits.