Buildings: VAT
The question
To ask the Chancellor of the Exchequer, whether she plans to remove VAT from refurbished building work.
Answered by Dan Tomlinson
VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
Residential renovations are subject to a reduced rate of VAT of five per cent if they meet certain conditions. These include conversions of buildings from one residential use to another, conversions from commercial to residential use, and the renovation of properties that have been empty for two or more years.
The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.
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