This week’s Budget statement will present the Chancellor Philip Hammond with a prime opportunity to address the inequality in VAT between new build homes, charged at 0%, and renovations, rated at 20%, according to Carol Peett, managing director of West Wales Property Finders.
Peett suggests that a much fairer solution would be to bring it in line with the 5% VAT rate that is chargeable on renovating a dwelling that has been empty for at least two years.
Her vision is that the current housing shortage could be alleviated by encouraging people to extend their living space, enabling a property suitable for a couple to be converted into one able to house a family.
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