FMB: Proposed VAT cuts will help self builders

European Commission plans to reduce VAT rates on renovation and maintenance work spell good news for homeowners hoping to undertake self build or refurbishment projects on their properties.

Under the proposals, the Commission could allow member states to cut the tax from 17.5 per cent to just five per cent on domestic building work.

The move has been welcomed by the Federation of Master Builders (FMB).

Director of external affairs Brian Berry says: "At a time when the construction industry is experiencing serious difficulties … a cut in VAT for repairs and maintenance work would help the building industry as well as millions of householders."

He adds the reduction could also outlaw cowboy builders by significantly reducing "the commercial advantage of the VAT evading trader".

In related news, the FMB has recently spoken out against government-proposed eco-towns, arguing that renovating existing empty homes is a better idea.