A coalition of housing and construction organisations is calling on the government to reduce the tax on repairs and maintenance work.
The move would save the housing sector more than £100m a year.

The group includes the Royal Institution of Chartered Surveyors, the Commission for Architecture and the Built Environment, the Royal Institution of British Architects, English Heritage, the Civic Trust, the Federation of Master Builders and the Empty Homes Agency.

It is pressing Whitehall to cut VAT on repairs to 5%, from 17.5%, ahead of next week's pre-Budget report.

The reduction is under discussion in the European Parliament but has been opposed by the Treasury because it would also mean applying VAT to new-build housing and children's clothes, both of which are currently VAT-exempt.

Michael Newey, chair of the European Housing Forum and European housing spokesman at the RICS, met ministers from 25 European countries in Italy last Friday to press for the change. Newey, who is also chief executive of Broadlands Housing Association, said: "The Treasury may need to compensate by introducing VAT on new housing, but this would create a level playing field."

Source

Housing Today