Carol Peett, managing director of West Wales Property Finders is calling for the Chancellor to address the inequality in VAT between new builds (0%) and renovations (rated at 20%) in his Spring Budget.
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.
Peett said: “We have personal experience of the gulf between VAT on a new build and on a renovation.
“When we inherited our traditional Pembrokeshire long house it was in dire need of an overhaul. We were advised that it would be cheaper to knock it down and start again, which would have been sacrilege.
“We bit the bullet and undertook a huge renovation programme incurring 20% VAT but many in our position would make the more rational decision and properties such as ours would be lost to future generations.”
http://www.propertyinvesting.net/cgi-script/csNews/csNews.cgi?database=default%2edb33379&command=viewonex = Propertyinvesting.net 7th March 2017