To ask the Chancellor of the Exchequer, what assessment the Government has made of the potential merits of reducing the VAT rate for goods and services required for the essential repair and maintenance of (a) residential and (b) commercial buildings.
Answered on
28 November 2018
The government keeps all taxes under review, including VAT.
Under EU rules, the government cannot reduce the rate of VAT on the repair and maintenance of commercial buildings. Applying the reduced rate of VAT on repairs and renovations of private dwellings would come at a significant cost to the Exchequer, estimated at £2.5 billion.
Any future decisions on VAT will continue to be taken in line with the normal Budget process.