72% of MPs support VAT cut on property repairs
- 27th May 2008
- Landlord Property News
A coalition called ‘Cut the VAT’ is calling for a cut in VAT on all building repair and maintenance work.
The coalition is made up of 11 varied organisations from the Countryside Alliance to the National Landlords Association and believes a cut in VAT from 17.5% to 5% would have a positive impact on the property market. A recently commission survey found that 72% of all MPs back the proposals put forward by the coalition.
By cutting VAT the coalition believes it would enable homeowners and landlords to not only make vital on going repairs, but implement new eco friendly strategies. A knock on effect of reducing VAT would be the following:
• Reduce the number of rogue builders
• Reduce the number of empty houses
• Improve the quality of housing
• Protect the countryside
• Increase the number of zero carbon homes
• Help tackle fuel poverty
• Preserve the national heritage
• Allow disable people to have essential renovations
Richard Hyslop, Cut the VAT coordinator, says: With the vast majority of MPs supporting a cut in VAT for building repair and maintenance work and with a majority of MPs from each of the three main political parties supporting a cut in VAT, the time for excuses is over; the government must act now and cut this pernicious tax.”
This view is supported by Professor Anne Power, London School of Economics: “The VAT on repair and renovation at 17.5% puts a very high tax on reinvestment by all owners in existing properties but particularly by the landlords of low quality property and by low income owner occupiers in low income neighbourhoods. Neighbourhood disrepair and decay create adverse conditions for individual investment in repair and modernisation.”
The government must act now and cut this pernicious tax.
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