VAT Exemption For Property Repair Work Proposed

 

A housing expert has recommended that Value Added Tax (VAT) should not apply when preserving existing properties.

David Ireland, chief executive at Empty Homes, suggested VAT on maintaining existing dwellings should be reduced by 5%, as this would bring it closer to the zero rate charged for constructing new homes.

"The differential then is pretty small and wouldn't skew the market in the same way and would actually encourage more people to bring homes back into use," he added.

If this was to happen, it would have numerous benefits, as it would ensure the current stock of properties will be properly managed and this will "pay dividends in the long run", Mr Ireland conclued.

His comments follow calls from the Federation of Master Builders (FMB) that removing VAT on domestic repairs would help bring one million residences in the UK back into use and this could ease the housing shortage. 

 

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