We should scrap VAT on renovations
While there’s no VAT to pay on new builds, most renovations and extensions attract the full 20% rate. Carol Peett, director of West Wales Property Finders, suggests zero-rating such building work would have wide benefits.
She says: “The current housing shortage could be alleviated by encouraging people to extend their living space. Adding an extension or converting an attic can turn a house suitable for a couple into one to house a family”
Peett adds that If couples are unable to move and they want to extend their house to cater for the growing family, they’ll be hit with a 20% VAT bill on any building works, making it too expensive from the get-go.
“There is also a knock on benefit in relation to social care. Many families are keen to look after their elderly relatives, but are unable to afford the VAT trap created when they want to build a granny annex.
“Encouraging more people to renovate or extend would provide additional work for builders and trades such as electricians, plumbers, etc. and, at the same time, by utilising existing buildings rather than building new, save our green spaces from disappearing under a sea of bricks and mortar. Additionally it would be less attractive to do ‘cash in hand’ work to avoid the VAT.”
If you are looking to buy a property in West Wales, contact West Wales Property Finders on 01834 862816 http://www.westwalespropertyfinders.co.uk