New tax rules good news for renovators, says Buildstore

Self build and renovation specialist Buildstore has issued a reminder that since January 1st this year those renovating their homes have been able to do so at a reduced rate of VAT.

The tax has been reduced from 17.5 per cent to five per cent for materials and work to carry out home improvements and renovations of derelict property.

Previously only homes that had lain empty for at least three years could get such a tax discount.

Buildstore has announced it is offering special mortgages for people who are carrying out such work, stating that now is a very good time to do it because of the recent new measures announced by the government.

Head of financial service marketing at the company, John Hay, said: "Initiatives like the Planning Reform Bill and the reduction of VAT on properties empty for two years will pave the way for a significant number of people to find homes."

The government may decide to add further incentives in the forthcoming budget.

It was announced by the Treasury last month that chancellor Alistair Darling will make his speech, which outlines government tax, spending and borrowing plans for the next year, on March 12th.


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