New VAT call over renovation

A building industrytrade body has made a new call for the rate of VAT on the renovation of buildings to be reduced.

Responding to a statement by the Department for Communities and Local Government (DCLG) that changes to empty homes relief will be brought in next month, the Federation of Master Builders (FMB) said that the problem of homes lying idle could be better addressed by reducing the cost of renovation.

The body said the most effective way of doing this would be to cut the VAT on such work from 17.5 per cent to five per cent, with FMB director of external affairs Brian Berry labelling the current rate an "unacceptable brake on the regeneration and re-use of vacant and under-used buildings".

Such a change could also encourage existing property owners to make renovations to their homes.

The FMB is campaigning for the measure alongside bodies such as the Empty Homes Agency, the Civic Trust and the Royal Institution of Chartered Surveyors.


© Adfero Ltd