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Housing: VAT

Question for Treasury

UIN 155178, tabled on 19 February 2021

To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of removing VAT from extensions to residential property that are undertaken to meet a disabled persons needs.

Answered on

24 February 2021

Consumers already benefit from a zero rate of VAT on certain building work for disabled people and a reduced VAT rate of 5 per cent on residential construction under certain conditions. Extending the current reliefs further would come at a cost to the Exchequer, and must be viewed in the context of about £50 billion worth of requests received since the EU referendum.

The Government keeps all taxes under review, and any future decisions on tax policy will be made at Budget.

Answered by

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